Problem statement

With Panda Bank striving towards being the new-age fully digital bank of the future, what are some banking products Panda Bank can offer that is integrated onto the Ethereum Blockchain?

Inspiration

We noticed that the Khmer Kingdom has a booming start-up culture, accompanied by an emerging SME business sector. From 2013 to 2018, startups increased from less than 50 to more than 300.

Coupled with the severe lack of funding for startups during the COVID 19 season, PandaBank is moving in the right direction and is in the right place at the right time. We seek to address this market by giving it what it needs - funds. Funds to invest and grow their businesses further.

We have identified a total of 3 gaps in the bonds market.

There are no existing "Kickstarter" blockchain bonds at a company level. Being the pioneer, we stand a good chance at capturing market share, allowing people to invest in something in the physical world on Web3.
There are traditionally extraordinarily high interest rates for Start-Ups and SMEs (average between 10-28%)
Significant price volatility of Cryptocurrency Assets

Since one of the greatest challenges hindering the growth of start-ups is their ability to secure funding, we have come up with a two-phased solution to tackle this problem.

What it does

PandaBond provides blockchain bond issuance for SMEs and startups, and bond investment products like callable bonds powered by smart contracts to consumers which are tokenized and tradable on the market. This provides companies that are in their nascent stage with funding while giving consumers an option to grow their wealth.

Types of Bonds

Multicurrency Bond: Raise more capital at a fixed exchange rate, allowing for more stability.

Standard Bond: The faster, cheaper, more efficient version of the Tradfi Bond or what some may call Bond 2.0. Standard Bonds have a fixed maturity date. The bond issuer is obligated to pay the interest as well as the principal after the designated maturity date.

Instalment Bond: This helps to lowest Interest rates in the bond market. Bond Issuers are obligated to pay at regular intervals of the entire maturity duration.

Callable Bond: The Bond Issuer may redeem the bond before it reaches the stated maturity date. This provides a great level of flexibility and nimbleness for the company.

With a wide variety of bonds to choose from, we can better tailor PandaBonds to the needs of the company.

What's next for PandaBond

Start local and scale internationally. There is no existing "Kickstarter" blockchain bonds on a company level. Being the pioneer, we stand a good chance at capturing market share, allowing people to invest in something in the physical world on Web3.

We will also roll out more bond products for B2B and B2C customers, attracting even more types of firms.

On the technical front, we look to explore employing Zero Knowledge Proofs for the verification of data off-chain, and for greater security.

How we will be building it

On the front-end layer, we will build our DApp in Typescript using the NextJS React framework. We will use EthersJS library to communicate with the Ethereum blockchain and interact with our bond smart contracts.

On the back-end layer, we will integrate Coingecko API into our project to query the fiat value of ERC20 tokens, which helps use present various metrics such as total value locked and volume in fiat currencies. We will also integrate AWS, specifically AWS lambda, to execute contract code in a serverless environment based on requests sent to the server. Our database, for the most part, will be stored on chain and retrieved through smart contract calls.

On the smart contract layer, we will use a combination of Hardhat and Remix to write, test and deploy our Solidity smart contracts.