By January of 2018, the overall global value of cryptoassets has reached to $800 billion. In addition to cryptocurrency exchange, cryptotokens mortgage loan is another best way to get liquidity for cryptoassets holders. However, as different platforms of cryptoasset loan are based on different rules, rare liquidity among cryptoassets loan services exists, user experience improvement is in urgent need. Based on Ethereum (ETH) Blockchain platform, The Force Protocol team will develop cryptocurrency loan protocols and standards in different scenarios. By converting cryptocurrency borrowing request into tokens exchange-like trading, order format standardization is realized. Stablecoins can cooperate with loan services. To make full use of stablecoins, Dual Token Model is proposed here, which can overcome shortcomings of existing stablecoins economic models. With this model, policy risk can be removed by introduction of supervision from third party custodian bank and auditing institution. In addition, sustainable full currency reserve mechanism is proposed for the first time.The Force Protocol will open source, and its instructions are encouraged to be called through API by third-party applications (supernode), with the purpose of providing protocol layer services for different cryptocurrency loan applications around the world. Moreover, liquidity and depth of loan platform are also expanded.
Blockchain technology such as cryptocurrency defines a new production relationship for the world. In the new relationship, benefits of production activities in all aspects of digital production are shared, without the need for any centralized organization to formulate distribution rules and intercept most of the revenue. The development of blockchain 2.0 technology represented by Ethereum, NEO, and other public chains makes the generation and application of cryptotokens easier and more convenient, which accelerates the tokenization process of physical assets or cryptoassets. In the past few years, the total market value of global cryptoassets continues to increase. By January 8, 2018, the global marketable cryptoassets (including cryptocurrency and Token) generated by blockchain technology reached $830 billion. It means that a large economy, which connecting the world and all mankind is on the way. Cryptoasset loan is the most basic financial demand in the cryptoeconomy.
Although there has been many DAPPs for loan at the time, such as ETHLend, SALT, CRED, etc. Most demands in the loan market still are not fully met. Several factors leading to the situation: First, decentralized loan platforms couldn’t solve the problem of cross-chain token value exchange, while centralized ones have risk of security and trust. Second, loan demands are divided by several independent Apps with no information shared among each other, which becomes obstacle to development of cryptoeconomy. Third, although stablecoin/stabletoken like USDT are widely used to offset the effects caused by price fluctuations in cryptocurrencies, Tether’s opaque financial and the fact of not being endorsed by the US government makes USDT under the risk of uncertainty, which further affects the development of cryptocurrencies market.
Based on these considerations, The Force Protocol is developed, which supports decentralized loan platform construction, orderbook sharing among decentralized 2 platforms around the word, and distributed stablecoin system endorsed by governments. Moreover, strategy of anti-money laundering and measures for bursting lost reduction is also designed.