“Have you ever seen a way to generate income by pledging the business model of an enterprise?”
01
Reshaping business models and opening a new era of digitalization
Recently, P2P.org has launched the Staking-as-a-Business (SaaB) network staking service.
What is staking? In a blockchain network, staking refers to the process of holding and locking a certain amount of cryptocurrency to receive rewards.
Imagine you put your money in a bank time deposit. The bank will use your deposit to invest or lend to others, and give you a certain interest in return. Staking works similarly, you "deposit" your cryptocurrency into the blockchain network, help the network verify transactions and maintain security, and receive new cryptocurrency as "interest."
The SaaB network pledge service provides C-end services to enterprises, and the platform provides a team to help enterprises achieve growth in pledge income.
For example, if you have a good company running now and the data is very good, but in the process of running the company, you are always troubled by the utilization rate of funds. At this time, if you choose the online pledge service and pledge your own funds, in addition to allowing your funds to generate fixed income, you can obtain a larger APY through the operation of the custody team, and you can also obtain a corresponding amount of new funds for the daily operation of the company or the expansion of new business lines.
At first glance, isn’t this just like pledging a portion of your assets to a bank to get a loan? If so, why choose online pledge services instead of banks?
That’s because compared to banks, SaaB has several advantages that banks cannot match.
02
Unlocking data value and driving enterprise innovation and development
1. Higher potential returns: The interest rate of bank loans is usually fixed, while the income of SaaB network staking services depends on the market performance of the selected cryptocurrency and the staking strategy, and the potential returns are higher. For example, in the case of a bullish crypto market, the return rate of SaaB staking may far exceed the bank loan interest rate; for another example, unlike the single-threaded returns brought by traditional staking services, SaaB uses node re-staking and multi-chain distributed staking operations, so all eggs will not be put in one basket, and additional income can be obtained while obtaining stable income on the public chain.
2. Lower entry threshold: Bank loans require a cumbersome application process, reviewing the company's credit record, financial status, etc., while the threshold for SaaB network pledge services is relatively low. As long as you hold the corresponding cryptocurrency, you can participate. This is a great advantage for some start-ups or small and medium-sized enterprises that have difficulty obtaining traditional bank loans.
3. Clearer account details: SaaB services provide a personalized dashboard where users can easily access all necessary information, such as the current annualized rate of return, total rewards, pledge balance, and related fees. This solves problems such as opacity, lack of technical knowledge, and lack of knowledge of returns. This is very friendly to some novice companies that have just entered the blockchain, saving a lot of learning costs, so that they can intuitively understand the operation and returns on the chain through traditional data models.
4. More flexible operation: SaaB network staking services usually support multiple cryptocurrencies, and some platforms allow users to adjust strategies at any time, such as increasing the number of pledges, switching pledged currencies, or withdrawing part of the income. Moreover, since the staking service of the SaaB platform is integrated into its core business, users can complete the entire process from purchasing cryptocurrencies to staking on one platform, realizing one-stop fund management. This is in stark contrast to traditional bank loans with relatively fixed terms and poor flexibility.
4. Higher transparency and security: SaaB network pledge service is based on blockchain technology, all transaction records are open, transparent, and cannot be tampered with, which is more secure. The banking system is relatively opaque and has centralization risks.
5. Greater growth potential: SaaB network staking services are an emerging financial service sector. With the continuous development of the crypto market, more innovative staking models and higher-yield products may emerge in the future, with huge growth potential. Bank loans are a relatively mature market with limited room for innovation.
Therefore, we can also say that SaaB network pledge service is a powerful supplement to bank loans, and it provides enterprises with a new financing channel.
03
Opportunities and crises coexist, how to deal with them?
With the rise of the proof of stake consensus mechanism on the web3 chain (PoS), staking has become a popular way to participate in the governance of the blockchain network and earn income. Users can choose a public chain they are familiar with to stake based on their personal preferences/staking time/market annualized rate of return/risk tolerance to increase the return on idle funds. The current market rate of return (APY) ranges from 5% to 20%.
The emergence of SaaB is a shock to the traditional financial market and even the DeFi market.
The profit of SaaB platform mainly relies on service fees, interest rate spread (the platform will keep a part of the income earned through re-staking as profit, and the rest will be distributed to users), value-added services and token issuance. This business model is a revolution for the traditional financial industry. At the same time, with its advantages of high returns, low thresholds and convenient operations, SaaB will attract a large number of investors to participate in the future, which also brings new challenges to financial institutions such as banks and securities companies.
The business world is always full of turbulence and change. The other side of challenges is opportunities. If traditional financial institutions embrace this technology and integrate SaaB into their own business systems, it will undoubtedly bring them new directions and draw a new growth curve.
For companies outside the financial market, especially small and medium-sized enterprises, SaaB will bring them considerable opportunities, from providing new financing channels to improving the efficiency of capital utilization, from developing new business models to entering the vast Web3 market.
Saab is still in an extremely early stage and there are still many fluctuations and risks, especially in the current unstable regulatory environment:
The first is the volatility of cryptocurrency prices. As we all know, the price fluctuations in the cryptocurrency market are very large, which will have a considerable impact on the staking income.
The second is the risk of smart contracts. The smart contracts of the SaaB platform have not been tested on a large scale in the market, and some difficult-to-find loopholes will lead to the loss of user assets.
Finally, there is the most important regulatory risk: the regulatory policies of governments around the world on cryptocurrencies are still unclear. Even the United States has begun to review deposits involving venture capital and cryptocurrency investments, not to mention other countries with stricter regulations. When legal conditions are not mature, any attempt at emerging things will inevitably take on huge risks.
Therefore, bosses with relevant needs need to be extra cautious when choosing a SaaB service provider. They should not only evaluate its technical strength, security measures, profitability and service quality to ensure the safety of funds and maximize profits, but also understand and be familiar with the relevant laws of the company's location.
If you or your company is interested in SaaB network pledge services and want to learn more, you can leave a message or contact us through the backend.
Risk Disclosure: This article is written by Digipear. The information contained in this article is for reference only and does not constitute any forecast or investment advice, proposal or offer. Investors should read the risk disclosure statement carefully before investing. Do not rely on such information to buy or sell any securities, cryptocurrencies or adopt any investment strategies. Please strictly abide by the relevant laws and regulations of your country or region. The terms used and opinions expressed in the report are intended to help understand industry trends and promote the responsible development of Web3, including the blockchain industry, and should not be interpreted as clear legal opinions.