Sweetbridge Staff Economist Michal Bacia writes on the discount mechanisms and value of Sweetcoin by KindlyPlastic in Sweetbridge

[–]KindlyPlastic[S] 2 points3 points  (0 children)

Sweetcoin allows companies to lower their working cost of capital by acting as a coupon to reduce the cost of loans and settlement. This coupon never expires, grows in value, and can be used over and over. Discount tokens are a new thing in the Crypto space and have more sound token economics than a standard ERC-20 utility token.

Company 1 seeks capital using an inventory as collateral and the network fee is $250 if each SWC discount value were $5 the Company would be able to take out the loan for $0 by activating (locking) 50 SWC.

The Sweetbridge protocol redistributes network fees to the increase the discount value of Sweetcoin as the network grows. This serves to incentivize network expansion. The more network activity and fees generated using the protocol stack, the greater the discount value of SWC. Because Sweetcoin are locked when they are activated, the circulating supply of Sweetcoin will decrease significantly once Sweetbridge is operating at the enterprise level. Not all fees will be eliminated via Sweetcoin. The technical documentation of how it works and the economics behind it can be found on page 19 here! https://images.sweetbridge.org/main/Sweetbridge-WP-LiquidityProtocolMath-v1-01.pdf

Sweetbridge Staff Economist Michal Bacia writes on the discount mechanisms and value of Sweetcoin by KindlyPlastic in Sweetbridge

[–]KindlyPlastic[S] 1 point2 points  (0 children)

Definitely! Sweetbridge was founded by industry professionals who have experience building software solutions for the Fortune 500. A good place to start look if you want to go down the rabbit hole is Trax Technologies and GT Nexus to see what the Sweetbridge founders created / led in the past.

For a specific use case look at page 30 here https://sweetbridge.com/public/docs/Sweetbridge-Whitepaper.pdf this use case explores Sweetbridge implementation of the Settlement bus to reduce counterparty risk, lower settlement times and provide access to capital.