SmartDeposits - uniting collaterals with investments using smart contracts
Mario Wiedl
June 8, 2022

What is a SmartDeposit?
A SmartDeposit locks your deposit money into a smart contract in order to gain interest during the time you live in your rental apartment.

How does it work?

1. Deposit will be locked into a smart contract

2. Deposit to be paid in stable coins or fiat

3. Locked money will be used for staking in order to earn low, but steady interest rates

4. Money will be automatically to the landlord and tenant after the tenant moves out

Deposit acts as collateral and investment.

Where does a SmartDeposit add value?

  • Deposit money doesn't just sit in an account (opportunity cost, inflation)
  • Earning interest on your locked capital
  • Money can be used to provide liquidity for the market
  • Reduction of administrative efforts and fees - opening escrow accounts

Investment approach - staking
Deposits are held in stable coins and are exclusively used for crypto staking.

-What is staking - A nearly risk-free way to achieve steady returns on the DeFi market by providing assets to the issuer of the crypto currency which are required for the creation of new coins (proof of stake).

-What is a stable coin - A crypto coin which is linked 1-1 to a fiat currency (i.e. US Dollar) and can´t fluctuate in its valuation This adds substantial security to an investment as they are not affected by crypto market volatility.

Monetization model

An amount of interest to a certain threshold could be guaranteed, while the exceeding amount goes to the issuer of the smart contract.

User Experience

  • Simple user dashboard including all investment data
  • Real-time monitoring of deposit value
  • Adjustment of investment strategy
  • Constant updates instead of annual notification from bank
  • Transparent cost overview

Why using Blockchain technology?

  • Blockchain is the most secure way to store data in the market
  • True-less environment allows two unknown parties to enter into a contract
  • Complete transparency about the investments and valuation for the user
  • Access to the DeFi markets allows for trading 24/7 and faster access to money

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