NAOS Fundamental Analysis

April 27, 2021

Human beings have been involved in exchanges of value for the most part of their history. Back in 2000 BC, the concept of exchange in the form of deposits began. Since then, it has been greatly refined and reshaped. In 1401, the world’s first bank opened in Barcelona changing the course of how finances worked entirely.

In the age we are today, the possibilities with financial services are endless. Access to them is easier, the process has become smooth and less complicated. As businesses begin to categorize differently, their needs change. Small and medium enterprises have different financial needs than those of multi-million business entities. The majority of the financial institutions failed to recognize this change and in doing so, they created a credit gap in the industry.

Right here is where NAOS Finance is gearing up to hit the block. With a vision to make the process of lending money on blockchain technology, NASO Finance taps the DeFi system. Eliminating all sorts of intermediaries ensures stability at all ends. Not only will it disrupt the world of DeFi but open endless possibilities for investments globally.

What is NAOS Finance

NAOS Finance connects SME borrowers with DeFi lenders who are looking to invest. As it runs over blockchain, it means the whole process is integrated in such a way that no hindrances remain. The nature of NAOS Finance eliminates the need for an intermediary who would otherwise be present in the middle of a conventional transaction. Meaning, the lender and the borrower are directly connected. Administering the transaction themselves, making their activities more stable as well as transparent. In the long run, NAOS Finance envisions the evolution of real-time assets into digital tokens which would then be available to lend through NAOS Finance.

NAOS Finance has taken the industry by a pleasant surprise. It has formed strategic alliances with prominent, fully accredited asset originators. Having fully insured partners guarantees secure exchanges. To add more protection to the already secure system, NAOS Finance is actively looking for on-chain and off-chain partnerships.

NAOS Finance components

The main function of NAOS Finance is to create an environment that aids borrowing and lending of funds. This means replicating operations of the already existing financial intermediaries on the Ethereum Blockchain. To achieve this, NAOS Finance protocol consists of the following components:

-Protocol

The standards that govern asset tokenization, lending mechanisms, setting interest rates, and the fee charges are up to the blockchain benchmark.

-Borrower dApp

A decentralized loan application d-app that would allow borrowers to carry out requests for loans directly on-chain. To do so, the application design is similar to that of the existing FinTech platforms on the user end.

-Lender dApp

A marketplace for loans containing real-world assets along with their risk profiles, maturities, and guaranteed yields.

Naos Finance Features

-Established SME Network

NAOS Finance caters majorly to the SME sector. The whole model for NAOS Finance has been built around them. So it only makes sense to facilitate them the most. The first step in this is the recognition of the SMEs. The team at NAOS Finance has taken aboard 2,000 plus SMEs. They have been integrated with the system in such a way that they have direct access to the NAOS Finance borrowing app, BAOruto through a web portal. The loan application process for them is quick and smooth. The information they provide goes straight on-chain through IPFS which means that it stays immutable and safe.

Although the whole model is set to disrupt the industry, NAOS Finance is still taking it one step at a time. Their partnerships with the existing FinTech companies show how they want to be careful about their operations. However, with time, the plan is to delegate the asset vetting process to the community.

NAOS Finance has built policies to not only protect the users’ data but also to secure the funds in any case of default.

- Fully Compliant for Loan Origination

The differentiating factor for NAOS Finance is its compliance with the regulations in different markets. The key to which is the strategically formed alliances. These partnerships have enabled NAOS Finance to operate in China, Indonesia, the Philippines, Vietnam, India, and Nigeria. NAOS Finance does not stop here. Through growing partnerships, the plan is to expand the ecosystem in South America and Eastern Europe.

- Diversified Bank Grade Income Generating Assets

Income-generating assets are the kind of assets that produce a cash flow over a set period of time. For example, bonds and ETFs in the retail investment sectors. However, the most trusted and popular kind of income-generating assets is corporate term loans when they are assessed for their yield and stability.

NAOS Finance provides retail investors with a chance to take part in private capital markets without any limitations on their net worth. Investors will have access to the following bank-grade assets from NAOS Finance Corporate Network:

Bridging Facility: financing to address immediate funding needs

Term Loans: business loans spanning from 6 to 48 months, for different purposes

Revolving Credit Facilities: a finance tool that makes re-borrowing and repayment possible

Loan Against Securities: facility to benefit against financial securities

NAOS Finance Partnerships/Supporters

NAOS Finance has been blessed to have its vision supported by some very prominent names in the industry. Some names worth mentioning are Josh Fraser (Co-founder of Origin Protocol), Matt Liu (Co-founder of Origin Protocol), David Jeng (CEO of Wintec Industries), and TN Lee (Co-founder of Pendle Finance). Their support made NAOS Finance what it is today.

Luckily enough, NAOS Finance was able to put together $5.1M in the most recent round of fundraising. Owing to the group of value investors that include The Spartan Group, CMS, GBIC, A&T, Lemniscap, Huobi DeFi Labs, Hash key, Maven 11, Genesis Block Ventures, DeFi Alliance, Collider Ventures, Morningstar Ventures, and Youbi Capital. These are names of just a few of the many who supported and trusted the vision put forward. The ultimate plan is to keep growing and keep innovating.

Final words

Undeniably, corporate finance has spun the wheel of human civilization for centuries. It is the conventional financial practices that have made modernization possible. However, the slight inconvenience that has always been attached to this practice is centralization which has often resulted in monopolization. They have hindered growth by controlling data, services, and freedom of possibilities. With the majority of operations now shifting to blockchain technology, there is a possibility of eliminating this unjust. Blockchain is set to take the world by storm in the near future, just as the internet did some decades ago.

The use of DeFi applications is perhaps the biggest innovation in recent times. Shifting to this technology will reset a lot of things. It will most certainly create a community that is free, open to all, and permission-less. Meaning, financial transactions will change their nature by a great deal. Which is exactly what NAOS Finance intends to do.

NAOS Finance enables multi-billion dollars’ worth of assets in real-world, fiat currency-denominated debt and other financial instruments to be tokenized and ultimately transacted on blockchain. NAOS Finance is bridging the gap by switching real-world assets into cryptocurrency. Later, this value will become a base for a much wider web of exchange into decentralized networks.