HomeCoinsGET Protocol (GET)Event Financing Update — Mechanisms to price risk | by Kasper Keunen...

Event Financing Update — Mechanisms to price risk | by Kasper Keunen | Oct, 2022

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AI interpretation of what i am doing for 60 hours a week.

Financing unlocks ticket sales

In the EFM the ticketing company is both a debitor as a creditor. The ticketeer tokenises the ‘real world loan’ given to the organiser. The ticketing company turns this loan into collateral via the inventoryBond. To issue the bond it needs to set a interest to it, so that the bond represents what effectively is a yield product. This makes it interesting for DeFi investors that want real world yield on their stables.

One rate, for all the risk

Pricing the unknown

Cancellation consequences with the old risk pricing

Increasing risk definition by tokenisation

Capitulating on the on-chain value flows

  • The base bond yield: Similar to before, we have a static base yield (in USDC) that will be paid by the bondIssuer no matter the outcome of the event. This part of the yield covers the cost of capital and risk the ticketeer not being able to cover its obligations (which is legally enforced by the foundation, similar to how TrueFi and Maple enforce collection legally to its borrowers).
  • The performance inventory yield: Based on the amount of NFTs minted by the eventNFT contract, and the ‘performance yield’ configuration as set at when the bond was configured at its offering. This yield is settled in GET/xGET after the event is completed. The settlement of this debt is completely handled and assured by the EFMs smart contracts.

A good fit

In the bondOffering the issuer can configure that for every NFT issued after nftIndex 4000, 5$ worth of GET from the Ecomomics contract will be deductible by the inventoryBond owner at expiry. Effectively giving the inventoryBond owner a kickback for the ticketsales in a certain range.

In conclusion; better pricing for all

Summary, in normal english

  • The base interest rate for the bond — which is paid in USDC and has to be paid by the bondIssuer no matter what (so irregardless of the outcome of the event).
  • A performance inventory yield — a yield paid in GET/xGET and is dependent on how much tickets where sold for the event in question. You can think of it as a ticket sale ‘kickback’ for those that bought the bond.

The benefits, in english

Unlocked potential for other actors

What does it mean for the token sir?

So when will we see this in the wild?

Until the next one frens,

KK



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