Soil: Bridging the gap between virtual and traditional financing

At a time when investors are losing their hard-earned money as even well-established banks and lending firms are collapsing, virtual currencies are providing them a glimmer of better financial future.

People are more than willing to invest in virtual currencies but they are skeptical about the security of their investments.

This is where Soil steps in as it not only provides investors with options to invest virtually but also guarantees the security and the best possible return for their investments.

Gulf Today recently spoke to Jakub Bojan, Co-Founder of Soil, to know in details about the company and the benefits it provides to its investors

Q. What is Soil?

Ans. Soil is an innovative, self-balancing DeFi 2.0 protocol building a bridge between borrowers (traditional businesses) and lenders (crypto holders). It is building a debt marketplace where established businesses of various industries may raise funds by applying for loans provided by stable-coin holders.

Soil is backed up by one of the most active lenders in the Southern and Eastern Europe sub region, Mount.

Mount will be a lead generation partner for Soil, offering their clients Soil's services as an alternative to the traditional corporate debt market.

Q. How does Soil operate?

Ans. It bridges crypto world with the traditional world, as it believes that being only in one world is not enough. It cooperates with the traditional businesses that are not familiar with the technology helps them adopt to the virtual world gradually.

As the concepts of bitcoin, metaverse and blockchain are in their early stages people investing traditional methods are not much familiar with them. Soil helps them understand the benefits of virtual investments as most of the times they read or hear negative stories about it.

People at Soil make investors understand that investing through blockchain is much safer and easier than thought.

Q. Where is Soil based?

Ans. Soil has based its operations in Estonia and Malta, two of the world's most favourable jurisdictions for global crypto projects. Its strong legal structure ensures that it is fully compliant with all relevant regulations, and its offices in these jurisdictions give them the ability to serve a global community of investors.

Q. What is a blockchain?

Ans. A blockchain is a decentralised, distributed and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.

People very often tend mix blockchain with a crypto currency, which is not at all true. There is a difference because blockchain is a technology it's like a infrastructure. It's like the internet.

In simpler terms a blockchain is the internet and the crypto is like a mail. One can have internet without the email, but one cannot have an email (crypto) without the Internet.

Q. What is the use of blockchain technology and why should one use it?

Ans. First of all because it's truly global technology, which makes transactions much easier and quicker.

Using the blockchain, one can limit the transaction costs, geographical barriers, administrative barriers, and can really access the clients all around the world.

For example if one wants to send money to Estonia from Poland or Argentina it won’t be easy through normal transfer as one has to first convert the currencies at fees than  transfer it through bank or an exchange centre, which will take their fees also. Whereas in a blockchain one can transfer money at almost negligible fees and the recipients get the amount in their e-wallets in a flash.

Moreover, there is no difference whether you're transferring from one account to another worker account $1 or $10 million as it is all digital.

Everyone in the blockchain in the world can verify that the transaction was made as all transaction in a blockchain are transparent

Q. How does Soil bridge the gap between investors on a blockchain and the financial world outside?

Ans. As an alternative to the traditional corporate debt market Soil provides both lenders and the corporate businesses the cushion of safety, security of their investment with a much simpler and easier process.

Lenders put in money in their e-wallet, which is secured in a blockchain. Then Soil lends their investments to the businesses without letting lender worry about the safety of their money.

From the businesses’ part they also find the whole process transparent and easier as it save them from going through loads of paper works.  It saves them time as well as the hassle of running around banks or traditional lending firms.

Lenders start receiving their returns depending on the duration and amount of their savings. Soil makes it a win-win situation for both sides.

Q. How does Soil make risk-free investment possible?

Ans. For the crypto investors, Soil wants to provide them secure and stable yield on their stable coins and give them the material and tangible assets on the collaterals that give them a comfort that the money that they have invested is backed with a real world assets.

That gives them the comfort of knowing exactly where they have invested.

People who want to use technology use the blockchain and use the stable coins. Security for them is crucial. The comfort that they will not lose the money is crucial.

Debt is secured with two different mechanisms. Firstly, it is secured with real world assets as platform uses lenders money to lend money to the established businesses operating in a traditional world.

If they want to borrow from Soil platform, they have to provide it a proper collateralize. So the whole cash flows are secured, protected and backed by the real world assets. Therefore, in case of the default, the collateral assets will be converted into real money and will be used to pay back the lenders.

Q. What are the procedures followed by Soil in choosing companies to have business with?

Ans. Soil has an investment team that is responsible for doing a proper due diligence screening from the companies. It works with firms, which have the acceptance rate for the corporates is around 7%. So it means that Soil had a very strict policy for itself in the companies. Soil has a very strict policy about screening the companies. Once a company passes screening it has to provide collaterals, which are mostly bond funds. A firm has to pledge on assets, ownership, title to the real estate, personal guarantees, and so on and so on. All this helps Soil in offering its crypto investors safe and secure yields.

Q. How does one start earning through Soil platform?

Ans. First of all investors and clients are required to go through KYC (Know Your Customer or Know Your Client) check which is the mandatory process of identifying and verifying the investors or clients’ identity when opening an account, to make sure of their genuinity on the platform.

After going through KYC, investor can go to the Earn section of the platform and lock his/her money for example for 18 months earning 16% and connect it to e-wallet, which lands one in a blockchain where everyone can verify the transaction. One starts earning depending on the amount and the duration of the investment in just few clicks.

Q. What differentiates Soil from the other companies working in the same field?

Ans. First of all we've got our protocols which are not totally based on blockchain because Soil has got an exposure to the traditional world also.

Some investors or some protocols that are operating only in the blockchain want to have everything within the chain.

However, the problem right now is that there are very limited number of business models in the blockchain. One cannot lend money in the crypto to the corporate, which is not in the blockchain.

Soil makes it possible for investors in the blockchain to lend money to the corporate, which is outside the chain assuring safe and secure returns for the investors and easy debt for the corporate.

This very feature differentiates Soil for the all other players in the market right now.

Of course, there are pros and cons for different groups of clients. However, more people are looking for the comfort and safety and will invest in money in a protocol like Soil because it gives them the comfort that it's somehow connected with the tangible world rewards.

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