plannedTrade Finance

Trade without trusting banks

SBLC pricing was set in a bank-rate era; the spread shouldn't keep paying counterparty risk premiums on every shipment. Trade Finance replaces the SBLC stack with a smart-contract escrow plus an oracle network attesting to delivery.

The trade

Standby Letters of Credit are priced 1–3% per year for what is functionally a delivery-or-default insurance product. Trade Finance reframes this as a one-time 1.7% fee against a 4-of-5 oracle consensus on physical delivery, collateralized in MXD and settled in seconds.

Mechanics

  • Collateral: MXD held in escrow until delivery oracle attestation
  • Oracle consensus: 4-of-5 attestations from accredited validators
  • Fee: 1.7% one-time on contract notional
  • Dispute: 7-day challenge window with on-chain arbitration

Status

Planned. Blocked on Asset Validator mainnet release (the delivery oracle leg).