Stellar Community Fund

Products & Services

HiYield aggregates liquidity for the increasingly fragmented tokenized RWA (real world asset) market using its custom-built HiYield lending market. The HiYield lending market has a unique architecture ideal for tokenized assets, enabling both borrowers and lenders to maximize returns on tokenized assets, participate in pre-vetted offerings from both public and private markets, and access deals from other partner tokenization protocols.

The problem HiYield addresses is the growing fragmentation of the RWA market. Liquidity Fragmentation erodes the benefits of tokenization, hurting investors and new protocols alike. HiYield addresses this problem by aggregating liquidity into the HiYield lending market, pre-vetting opportunities on our platform, and allowing investors to access the market’s best deals all in one interface.

The HiYield lending market consists of a passive lending pool with broad exposure to all tokenized assets and a number of isolated lending pools against an individual collateral type. It comes with several benefits for both borrowers and lenders:

Lenders

Flexible credit risk by lending in isolated pools that match your risk-profile
Flexible duration risk by lending in isolated pools that match your investment horizon
Lend in the Passive Pool if you don’t want to actively manage your position
Lenders receive a variable interest rate based on the utilization percentage and borrow rate of the pool

Borrowers

Borrow against your tokenized assets to purchase more tokenized assets, achieving a leveraged return
Borrow against your tokenized assets to purchase other assets, increasing yield on all your investments
Borrowers pay a fixed interest rate

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Our asset offerings fall into 3 categories: Public Markets, Private Markets, and On-chain markets.

Public markets include US treasury bills, corporate debt, and asset-backed securities. Private Markets include products like invoice financing, and on-chain markets include working with existing tokenization protocols on other networks to re-issue their tokens on Stellar.

HiYield offerings are SEC-exempt “Private Placements” (RegD/S). Private Placements are open to accredited US investors and all non-US investors. Additionally, we keep the offerings at 9 months or less to maturity, which removes the 99 investor limit resulting in no minimum investment size. We work with a top law firm with extensive experience in the blockchain industry to ensure our offerings are compliant.

HiYield earns revenue by charging a spread on the interest earned off-chain vs the interest offered on-chain. For example, a tokenized asset might earn 10% yield on-chain, while the off-chain assets earn 12%. In that case, HiYield would earn 2%. The more offerings that HiYield makes on Stellar, the more revenue it will generate.

HiYield completed a proof of concept on Ethereum aggregating ~1.2M in total USDC deposits across two product offerings, a 2 month treasury bill and a line of credit to HiYield.

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Previous Project(s)

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Progress so far

Goals

To get there, we request a budget of

150,000

to:

Additional information

Pitch deck

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Deliverables

First Deliverable

Our first deliverable is a detailed functional specification of the smart contract architecture. We have completed this task (shared with reviewers but not publicly as this is proprietary information).

Links:

Team

Our team is set up for success with the ideal cross-section of traditional finance and blockchain experience. Our founders have experience in investment banking (Deutche Bank), equity research (Deutche Bank), and venture capital, as well as an excellent track record of building blockchain-based products. We helped launch key ecosystem building blocks in the ICON Ecosystem (ICX) as part of our previous roles, including an NFT marketplace (craft.network) and a stablecoin + DEX (balanced.network).

Scott Smiley (benny_options)

CEO

Scott comes from a traditional finance background working on asset-backed securities at Deutche Bank prior to joining the crypto space in 2018. He worked at ICON from 2018 - 2022, working on token economics, strategy, and governance until focusing on the application layer of the ICON blockchain to help bootstrap the ecosystem.

Twitter / LinkedIn / Github

Ricky Dodds (0x2#6971)

COO

Ricky comes from a traditional finance background, with 8 years of experience between investment banking and equity research at Deutsche Bank. He worked at ICON from 2018 - 2022 with a focus on strategy and communication.

Twitter / LinkedIn

Daeki Lee (Dodo#8244)

CSO

Daeki comes from a Venture Capital background, with 4 years of experience working at Translink Capital. He worked at ICON from 2018 - 2022 with a focus on strategy and product management until focusing on the application layer of the ICON blockchain to help bootstrap the ecosystem.

Twitter / LinkedIn

Justin Hsiao (Justin | Lydia Labs#4228)

CTO

Justin comes from a AAA gaming and software development background. He worked on games such as Battlefield during his time at EA. He also has startup experience with 2 successful exits prior to entering the blockchain space. Justin worked at ICON from 2018 - 2022 with a focus on devops, developer relations and developer documentation until focusing on the application layer of ICON by bootstrapping an NFT marketplace in the ICON ecosystem.

Twitter / Github

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The USD valuation of the budget request in XLM will be calculated using the CF Stellar Lumens-Dollar Settlement Price on December 5, 2022 as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR). Learn more in the SCF Handbook.

*The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on July 5th as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)

**The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on December 16, 2021 as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)

*The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on September 27, 2021 as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)

* The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on the date of transfer as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)

*This budget request has not been fully awarded to the project. The USD valuation of the budget request in XLM will be calculated using the CF Stellar Lumens-Dollar Settlement Price on day of payment as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR). Learn more in the SCF Handbook.

*This budget request has been awarded to the project in XLM. The USD valuation of the budget request in XLM will be calculated using the CF Stellar Lumens-Dollar Settlement Price on day of payment as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR). Learn more in the SCF Handbook.