Protocol
The first problem the Project has to solve is the objectivity of the collateral data. This part is handled by the Protocol - i.e. formalising within the onchain entities of any blockchain by means of NFT mechanics.
Let's remember Collateralised debt obligations (CDOs) - collateralised debt obligations: it was these and credit default swaps (CDSs) that ignited the flames of the 2007-2009 crisis. Why?
Most importantly because it was not clear what was behind these "securities", what was behind their ratings - even if they were the highest, i.e. AAA, what was the effect of the floating rates on which the loans were based, on which these CDOs were in turn based? What happened in the USA in 2008 may well happen in Russia 2021 and dozens of other countries with different levels of economies. But why exactly?
Because no collateralisation mechanisms have yet been created for complex financial instruments. Part of their principles, however, are inherent in the established, though still "raw", DeFi market. Let us try to clarify and thereby reveal the key purpose of ENVELOP (NIFTSY) and its token.
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