Components of Polytrade Ecosystem

Following are the various components of the Polytrade ecosystem:

1. Transaction Stakeholders

a) Seller

The seller is the person who sells his product to the buyer. Then he finances his invoice on the Polytrade platform.

b) Buyer

The buyer is the person who buys goods and ultimately makes payment to Polytrade

c) Liquidity Provider

The liquidity provider is the investor who deposits Stablecoins on the Polytrade platform. Polytrade uses these funds to purchase invoices from the sellers.

2. LenderPool

LenderPool is the Liquidity Pool where Liquidity Providers’ funds are kept. It is a smart contract in which funds are locked until utilization.

This utilization can be in the form of either a) Payment to a seller for invoice financing, or b) Deposit of idle funds to AAVE (a crypto lending platform).

3. Deposit Interface

Liquidity providers can deposit their funds on Polytrade through two types of wallets:

a) Metamask b) Venly

4. Reward Manager

Reward Manager is a smart contract that calculates interest rewards for the Liquidity Providers.

Polytrade platform can replace the existing smart contract with a new smart contract to update its reward policy.

5. Verification Manager

Verification manager is a protocol built to verify the identity and source of funds of an investor/ liquidity provider. this is done by Polytrade as a part of business risk management.

The platform needs to ensure that they are not dealing with illicit people or their money. For this Polytrade uses a Decentralised Identity (DID) verification system

6. Governance Council

Governance council is a body formed by unbiased industry professionals who can govern the overall ecosystem of the platform. The council members are known as Delegates.

Delegates are approved by Polytrade and they also need to lock their funds with the platform.

For governance, a delegation model is followed. This means that TRADE token holders can delegate their tokens to an appointed Delegate and exercise their governance right through a council member.

All the invoices are approved on Polytrade by an AI-based (Artificial Intelligence) approval engine. Governance council can impact or influence the rules or basic principles of this engine.