The key element of INK’s financial tooling is its ability to wrap any bundle of assets, and any information regarding them, into fungible tokens, which can then be further used as collateral in lending or as components of fund portfolios. The choice of not conforming to a pre-defined asset format, such as ERC-721, is deliberate, with the main motivation of achieving maximum portability in a multichain operating framework.
In the case of physical assets which contain information such as insurance, appraisers, deeds, and so on, the INK Products Module can wrap such information into a set of metadata, which has a fungible representation so that it can be handled by mainstream wallets and trading facilities.
The construct that makes this abstraction possible is the InkEnvelope, which removes the complexity of bundling any variety of assets, while preserving their descriptive information and adding a novel layer of programmability that seamlessly plugs into the world of DeFi applications. Below is the blueprint of InkEnvelope’s information composition:
- Wrap the results of an INK DAO’s off-chain asset adoption into InkEnvelopes, the uniform on-chain digital assets.
- Create financial products that are collateralized (or backed) by the Enveloped assets, or that use InkEnvelopes to hold such assets as their portfolio components. These created financial products can then be made available to investors through “on-the-go” auctions or fundraising, such as legit crowd funding.
- Redeem financial products with on-chain settlement and clearing.
- Set risk control triggers and other operation triggers for the financial products.
- Query and parse information regarding the assets or the financial products, i.e., peek into the InkEnvelopes.
With this Module, the complicated features of bespoke assets and financial products are made easy to process and understand. INK doesn't just set up a DAO—it also gives the DAO all the tools to do its financial job. The following are several use cases that demonstrate the capabilities of the INK Products Module.