Harnessing Crypto Volatility for Entrepreneurial Financing

General Description

The Trood Hedge Token (T🦔T, or THT) is a family of tokens that aims to provide investors with a high-reward investment option in the cryptocurrency market.

THT is designed to help early-stage entrepreneurs while functioning as a hedging instrument that can be used to manage risk in cryptocurrency portfolios. THT offers a unique solution for investors looking to manage risk and maximize returns in this exciting but volatile market.

THT can be based on the TRST token, which is a utility token designed to be used within the Trood ecosystem. Alternatively, THT can be issued as a separate token that is not directly tied to the TRST token.

THT is also Sharia-compliant, making it accessible to a wider range of investors who may have specific ethical or religious requirements for their investments.

T🦔T is a token that might be issued individually for anyone who wants to get a quick loan from a community.

Problems it solves:

• Complications getting secured loans quickly
• The need for a borrower to have cryptocurrency or another collateral
• Sharia restrictions and ethicla questions of getting % loans from close circle

Working scheme

Works like this: A borrower borrows money, for example, in ether, for example, one ether. At the time of the loan, Ether costs, for example, 1700 USD.

The borrower has to return the same one ether, but if ETH falls to the dollar while she is holding it, and costs 1500 USD, then she will have to give back ETH for the amount of USD 1700, that is 1,133 ETH

And if the ether strengthened, then it turned out that she borrowed 1500 USD, and gave 1700 USD back.

To reduce borrowers’ risks for too high crypto volatility, two options might be used:

1. % limit in the currency of the loan
2. Different time gaps for the return of the borrowed amount and return of the exchange rate compensation