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 funding, giving lenders access to a new asset class with competitive interest rates. 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 complex financing mechanisms.
Project finance transactions are complex and costly. It may take anywhere from one to three years and millions of dollars to put together a financing package and carry out due diligence, making the funding model ill-suited to smaller projects valued from a few million up to 100 million USD. Projects that typically fall under this scope include essential infrastructure assets such as solid waste management, water supply and treatment plants, renewable power such as solar plants or wind turbines, energy-efficient street lighting, or primary healthcare and education.
Governments commission private companies or state owned enterprises to build these types of assets, with loan repayments starting from when the asset or service is in operation.
Silta aims to be a solution which allows project companies to apply for financing in the DeFi space. For DeFi investors, tapping into the infrastructure markets enables new financial products which are grounded in cash flows from real-world assets.
The Silta technology solution is currently in development. Once operational, it will consist of several key components:
- A transaction pipeline, i.e. a repository of funding applications by project companies,
- A proprietary credit scoring system where the project is assessed from a risk analytic point of view and scored on environmental, social and governance (ESG) criteria,
- Smart contract based loan pool, and
- A decentralized governance system.
The community is a key part of Silta mission. The governance will be largely decentralized, and Silta token holders will be able to decide which projects are eligible for funding. Through the Silta DAO, token holders can help determine the direction of future development, expansion to new markets and sectors, and most importantly, what kind of development they want to see in the world.
With an increasing number of borrowers from South East Asia and the MENA Region showing a keen interest in Silta, the aim is to tokenise the first project finance loan by Q2 of 2022.
Find out more and read the whitepaper at silta.finance.
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