Distributed Treasury Management (DTM)- Detreman
Cryptocurrencies are often talked about today in the context of huge investments – and their attendant controversies – made by personalities such as Elon Musk. But bringing them back down to earth, and into the realm of corporate treasury, raises the question of how such a volatile currency fits with the risk-averse nature of corporate financial specialists.
Because crypto is a completely new way of financial ‘doing’, it almost certainly requires a new way of financial ‘thinking’. No doubt notion of crypto is exciting and in particular the wider notion of blockchain-based decentralized finance (DeFi).
Alternative investment in terms of Crypto Currency is getting attention to bring more diversification across a portfolio.
Treasury management for cryptos is becoming important with fact that with DeFi and digital money enabling financial inclusion of the world’s unbanked, and super-apps potentially reducing demand for traditional bank accounts.
Bottom line is that with the world of money and financial instruments becoming ever more digitalized, treasurers need to adapt accordingly.
With above background, bringing Distributed Treasury Management Platform – dApp for treasury function of the organizations powered through Solana mainnet run on Serum protocol.
What it does
Key features include – State of the art User experience supporting multi channels and platforms (Web, mobility) Cash flows, Payroll management, Transaction activities Signup and login functionality - Integration to Solana supported wallet – Phantom and more Support capabilities for an individual, Company or DAO dApp Dashboard to show Name of account holder, total in and out data, recent transactions, notification activity Assets – Listing of all assets – supports multiple coins through Serum protocol and Wormhole bridge One Click Payments to people (individual or team) Add Team and people underneath each team to structure the payments (import through CSV) Transfer – Choose the from currency , select the team (select individual with in as needed), mass payment in single experience in different currency Multisig capability to have more than 1 approver for transfer Chatbot support – Help and Customer service automated through bot capability Transactions in Batch so as to save gas fees on transfers Configurations – to have new owners to be edited in platform on regulatory checks Support to switch between mainnets to support multiple networks over Serum
Activities across globe has piqued the interest of corporate treasurers. Organizations, have expressed interest in cryptocurrency initially as a fringe method of collection, a potential experiment for their foundations and even as an outlet for excess cash.
Confident that this platform will spark new thinking in payment infrastructure, processing, an accounting, in addition to its increasing adoption as a store of value.
Rather than leveraging agent model - escrow account where a trusted third-party holds deposits on organization behalf. Once a client or customer pays the company using crypto, the agent then collects the cryptocurrency, holding the private key on behalf of the organization. From here, the organization can either keep crypto with the third party or request that it be converted to USD or another fiat currency – then transferring the funds to a bank account. They can keep the crypto position in the hands of the agent, or alternatively, they can request that the agent convert the crypto to USD or another fiat currency and then transfer the funds to a preferred bank account.
Detreman DApp brings capability for direct model where a company holds and controls its own private keys. They operate as a direct participant with their own wallet and accept the crypto directly from the remitter. A remitter can be an individual, a wallet provider, the exchange, or the custodian of the remitter. This approach requires a certain level of accounting and treasury expertise, especially if the company has chosen to hold crypto on its balance sheet. Typically, the receiving organization does not convert the crypto to fiat. Instead, the company holds the private key as a bearer instrument for their crypto.
How we built it
Outsystems Low code platform, .net, java script
Challenges we ran into
Cross chain and currency support
Accomplishments that we're proud of
Next gen User experience for treasury function users with support of Solana and Serum
There is another burning issue that may be holding back some treasury investors; that of current environmental, social and governance (ESG) concerns around certain cryptocurrencies. Recent controversy around power consumption and coin mining being front of mind for many. Good aspect is Solana blockchain validates new tokens through proof of stake, a far less energy-intensive protocol structure than the traditional proof of work that other major cryptocurrencies rely on.
What we learned
Learned integration of external systems with blockchain based decentralized application. Mastered the use of tokens , NFTs and smart contracts.