Silta – the bridge connecting decentralized finance with infrastructure investments
Further information: https://silta.finance
Silta Finance is a technology solution to connect decentralized finance (DeFi) with infrastructure investments. Silta provides on-chain collateral which enables real-world infrastructure developers to access liquidity in DeFi. TX is the technology partner building Silta.
The vision behind Silta Finance is to build a world with sufficient renewable power, clean water and infrastructure. The reality today is that many of the small-scale, progressive projects for developing these assets face a roadblock due to the red tape in traditional financing mechanisms.
Traditional project finance transactions are complex and costly: It can take up to 3 years and millions of dollars to put together a financing package and carry out due diligence. This makes the funding model ill-suited to smaller projects valued from a few million up to 100M USD. Projects that typically fall under this scope include essential infrastructure assets that communities desperately need, such as solid waste management, water supply and treatment plants, renewable power — solar plants or wind turbines — energy-efficient street lighting, primary healthcare and education.
Silta is a solution which forms a bridge between DeFi and real-world assets. Silta provides infrastructure developers with the on-chain collateral which enables them to access liquidity in various DeFi protocols. The DeFi lenders using these protocols can thus gain access to real-world projects that yield steady long-term returns.
The Silta technology solution is currently in development. Once operational, it will consist of several key components:
- A transaction pipeline of funding applications by potential borrowers (project companies),
- A proprietary scoring methodology for due diligence, risk and sustainability (Silta score),
- Smart-contract-based loan pools, and
- A decentralized governance system (the Silta DAO).
At the heart of the solution is the Silta token, an ERC-20 governance and utility token on the Ethereum network. The use of Silta tokens as collateral makes Silta compatible with major third-party loan protocols, enabling borrowers to access the multi-billion DeFi market. The token also empowers the Silta community to decide what kind of development they want to see in the world. The Silta DAO (decentralized autonomous organisation) decides by vote which projects are eligible for funding and can be granted collateral in Silta tokens.
With an increasing number of borrowers around the world and DeFi protocols showing a keen interest in Silta, the aim is to collateralise the first project finance loan in 2022.
Find out more and read the whitepaper at silta.finance.
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