Introduction

Paddle Finance is a decentralized liquidity protocol that transforms asset management

Paddle Protocol is strategically focused on the bespoke asset market. As blockchain technology evolves and diversifies, we are seeing an increasing number of assets on the chain that defy standardization. This shift means that the scale of bespoke assets could potentially exceed that of standard assets, reflecting the real-world diversity where most assets are unique and not uniform. The use cases for bespoke assets are more extensive than many realize, which is why Paddle Protocol is committed to addressing this broad and varied market.

The Market Size of Bespoke Assets

Paddle Protocol targets the bespoke asset market. With the development of more and more diversified use cases, more assets in the chain will not be standardized, and the scale of bespoke asset will be much larger than standard assets. Imagine in real worlds, most of the assets are not identical and standard - that is the concept Paddle Plan to serve. That is, in addition to the typical Non-Fungible Tokens (NFT), the scope also includes all types of bespoke tokens, certificates, new token standard, and alternative assets. Among them, the most representative types of bespoke assets include:

• Non-Fungible Tokens (NFTs)

• Ordinals or Inscriptions

• Liquidity Provider Tokens (LP Tokens): Tokens representing a share in a liquidity pool.

• Fungible Tokens with Limited Liquidity: Such as Altcoins or Memes cryptocurrencies

• Real World Assets (RWAs): Physical assets digitized and traded on blockchain platforms.

Why Paddle Protocol was Developed

Paddle Protocol was created to address the unique characteristics and challenges of bespoke assets. These assets, often scarce and valued as both investments and collectibles, face difficulties in trading due to their specialized properties. This includes assets like GameFi items and Liquidity Provider (LP) tokens, which carry embedded utility that traditional financial systems struggle to accommodate.

Furthermore, bespoke assets lack mature marketplaces, making financial settlement a major pain point. Paddle Protocol was developed to eliminate the need for mutual trust or centralized custodians, providing a seamless and secure platform for trading and liquidity.

Empowering Bespoke Assets with Collateralized Loans

We believe the optimal way to unlock the potential of these assets is through a versatile collateralized loan system. Paddle Protocol introduces various loan forms—ranging from peer-to-peer to crowd lending—to accommodate the diverse nature of these assets. This approach not only enhances their usability but also caters to the specific needs of different asset types.

Extending Support Beyond Loans

Moreover, Paddle expands this support to include broader leasing and sales markets, ensuring that liquidity can be maximized without compromising the assets' utility or financial value. This comprehensive strategy allows asset holders to fully exploit their bespoke assets, providing them with flexible options to generate liquidity while maintaining ownership.

Maximizing Capital Efficiency

Paddle is also introducing a new token standard that separates user rights from ownership, paving the way for zero-collateral borrowing and renting. This innovation will significantly increase capital efficiency, creating more opportunities for on-chain assets and expanding the potential of decentralized finance.