Vision
"I am an artist, this is how I see it"
The Problem
Historically, the main players in trade finance have been large banking groups (Standard Chartered, HSBC, ICBC, ING, etc.). They still retain this position.
At the same time, trade finance has always had many peculiarities and problems:
Difficulty of opening a business account in a large bank.
Difficulty in obtaining financing (LC/SBLC, etc.): for SMBs, getting financing is almost impossible since it is necessary to prepare numerous documents, and the process takes a significant amount of time.
High cost of application processing and the financial instrument itself.
In the case of commodities, there is a very high risk of failure due to middle-risk/high-risk operations.
New trade finance services that try to solve these problems are emerging on the market. However, the vast majority of them operate in the real world and are not related to crypto. As a result, there is no adequate way of providing crypto liquidity for a specific trade deal. DiamondShell fills that gap.
DLC/SBLC Tokenization (RWAs)
RWAs (real-world assets) tokenization is a trend that is only gaining traction.
In trade deals and trade finance, tokenization is a way to accomplish two key goals:
The possibility of breaking a large batch of goods into parts and selling them separately (e.g., an oil tanker costs USD 40M, and normally, it’s not possible to buy 1/10 of the tanker).
The possibility of using tokenized assets as collateral/guarantee (i.e., a trading company utilizes the purchased goods as collateral for borrowed funds).
By providing liquidity to a trade deal, the DiamondShell protocol receives collateral in the form of digital assets (issued on STATER, a partner service platform, https://stater.finance) plus a real digitally signed contract (via DocuSign).
Why Can’t You Just Buy/Sell the goods?
At first glance, it may appear that the easiest way to make money is to execute own buy/sell international operations. Yet, there is an acute list of problems that complicate the seemingly simple solution of implementing such a plan on your own:
For most types of goods, there is a minimum capital required to purchase a minimum batch. Usually, it amounts to several million dollars.
Obtaining a physical product is hardly a feasible task. Suppliers work with a specific group of buyers and do not cooperate with outsiders. It is very difficult to make it on to that list, since this requires reputation in the domain, licenses, etc.
Being well-versed in logistics is a must. It is crucial to have a very good understanding of how and where to load goods, how to transport them through customs, know what custom duties will be as well as the cost of freighting a vessel, and so on.
Through the DiamondShell protocol, we are helping ordinary people to make money from businesses that have long remained accessible only to a very limited circle of the wealthy.
Accepted Crypto
We accept the following crypto assets as investments:
USDT (ERC-20);
USDT (TRC-20);
USDT (BEP20);
USDC
TUSD
It is planned to implement support for investments in BTC and ETH in the course of 2025.
Antifraud
Anti-fraud procedures, or ways in which a financial company can check and guarantee that the borrower of the funds is a reliable client, are vital for any financial service.
The most popular model in the crypto industry is loan over-collateralization. It means that it is necessary to provide collateral in crypto in an amount that exceeds the loan amount. However, this approach is unsuitable for trade finance, as it is useless there.
To solve this issue, DiamondShell utilizes a whole set of procedures:
Providing trade finance services to controlled companies, i.e., companies in which we have an ownership interest, access to accounts, etc. With this approach, transactions become risk-free.
Mandatory conclusion of an official agreement with the borrower (through partner platform) with a comprehensive list of obligations, fines, and other details.
Mandatory preliminary audit of the borrower by competent auditors (analysis of financial documentation, business reputation, and history of trading activities).
Mandatory analysis of the trade deal for which funds are raised (the existence of an agreement with the supplier, an agreement with the buyer, the presence of a clear logistics plan, analysis of the economics of the transaction, etc.).
All these procedures allow us to reduce the risk of non-payment almost to zero.
Target Audience
The original vision of the project was to provide a one-click opportunity to invest in real trade deals without creating your own trade business. The user indicates the amount they are willing to invest, investment conditions, as well as the set of additional preferences if such exist, and the platform does the work (e.g., constructs a portfolio).
However, there are a number of legal restrictions (they vary depending on the country) on the use of fiat money. It was decided to include only crypto investments in the first stages of the project. Issues related to fiat investments will be resolved later on.
This means that the target audience of the project is users who have cryptocurrency and want not only to store it in a wallet, but also to increase the volume of assets over time. Presumably, most of these users are not traders or crypto geeks (in fact, most people are).
Profitability and APR
The essence of the protocol's business model is to provide funds in real-world trade deals (trade finance) and thereby generate profits. To do this, we use two main profit models:
Providing liquidity for certain period at a fixed percentage.
Providing liquidity for the duration of the trade transaction and receiving an agreed percentage of profit on it (i.e. deal profit sharing).
Statistics shows that the duration of a trade deal is approximately 3-4 weeks. Its profitability is in the range of 3-4%, which gives an average of 40% per year (assuming full capital utilization).
According to our economics, the actual return on capital that we can offer investors is 24% per year (depending on the period for which liquidity is provided).
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