Profit Yielding Telecom Bonds
Earn 20% from Profit Yielding Bonds
In TradFi, when governments or corporations borrow money, they issue a bond.
A bond is a loan from investors to the issuer, formalised as a debt security.
Commercial paper is a short-term, unsecured debt instrument that isn't backed by collateral like bonds.
Bondholders receive fixed returns in the form of interest, known as coupon payments, paid periodically until the bond matures.
At maturity, the principal is repaid, assuming no default occurs.
Commercial paper is sold at a discount and redeemed at maturity for its full face value, with the difference being the investor's return (like a zero-coupon bond).
Just like shares, bonds can be bought and sold on secondary markets, such as bond exchanges, allowing investors to trade them before maturity.
Commercial paper is primarily designed as a "buy-and-hold" instrument such that the secondary markets are much smaller and less liquid than the bond market.
Bonds are typically issued by governments (e.g., U.S. Treasury bonds), large corporations, or medium-sized firms with established creditworthiness.
Smaller businesses rarely issue bonds or commercial paper directly because the process requires significant resources, regulatory compliance, and investor trust.
This effectively limits bond and commercial paper issuance to medium-sized corporations and up, leaving smaller entities out of this market.
The risk associated with bonds varies, and this is reflected in the coupon rate.
Safer issuers, like stable governments (e.g., U.S. or Germany), offer lower coupons because the risk of default is minimal.
Riskier issuers, such as corporations in volatile industries or those with weaker credit ratings, must offer higher coupons to attract investors.
Only medium-to-large corporations with strong credit ratings issue commercial paper, as investors need assurance of repayment.
Bonds come with different time horizons—short-term (1-5 years), medium-term (5-10 years), or long-term (10+ years).
Longer maturities often mean higher coupons to compensate for the increased risk of economic changes, like inflation or interest rate shifts.
Commercial paper has a short maturity, usually ranging from a few days to 270 days (9 months), though most often it's 30-90 days.
Sukuk is revolutionising private credit by removing traditional barriers, giving digital asset allocators access to these markets and earning above market returns through profit sharing.
Sukuk gives stablecoin holders on Berachain a new source of yield. Users get consistent profit share returns from funding real world business.
Sukuk Bond Tokens are designed to be composable across DeFi, so users can take their Bond Token to be used in providing liquidity on Automated Market Makers as well as collateral for other actions like lending or borrowing.
Sukuk is a marketplace where profitable companies that TradFi perceives to be risky can issue a bond.
Investors can lend money; in return for a profit share, to companies who struggle to raise credit.
Our technology automates the flow of money in the sales contracts of a company (bond issuer) to mitigate risks for the investor (bond holder).
The essential feature of Sharia is that when loans are made, the lender (bond holder) must share in the risk.
Embedding our technology into a sales contract of a company (bond issuer) enables hardcoded compliance with Sharia principles allowing:
The risk associated with Sukuk bonds is based on the credit worthiness of the bond issuers customers and the underlying asset/supply being funded.
Sukuk bonds have short maturity varying from 22 days upto 15 months depending on how the funding for the underlying asset/supply is structured and the frequency of customer payments.
Bondholders receive profit shares frequently up to an equivalent of 20% APY and at maturity the principal is repaid, assuming no default occurs.
Sukuk bonds can be bought and sold on secondary markets, such as Kodiak, allowing investors to trade them before maturity or earn additional yield by providing liquidity on Kodiak.
Sukuk bonds can be loaned or borrowed on our profit sharing isolated-risk money markets such that borrowers loans are put to work to generate profits to be shared with lenders enabling borrowers to increase their position size in DeFi…….coming soon
Sukuk charges a performance fee to the investors who earn yield through the platform. For example; If a deal has been introduced where investors earn 20% APY then performance fee can be set at 30% such that the introducer/sales agent bringing the whole transaction flow to be funded would receive 50% commission.
If the introducer/sales agent brings only the customer or supply side, then the commission is split therefore receiving 25% commission for each leg introduced.
If you have stablecoins on any other blockchain you can use bridging providers such as Stargate Finance to transfer your coins to Berachain.
We target 10-20% base return equivalent in profit shares for underwriting credit and payment terms to customers when funding supplier terms in our transaction chains.
Yields can be boosted by providing liquidity on DeFi AMMs using the bond tokens issued when stablecoins are deposited into pools.
Yields will be compounded if investors do not withdraw their liquidity from the pools.
Sukuk stablecoin pool smart contracts utilise the ERC-7540 token standard that enables asynchronous interactions with ERC-4626 tokenised vaults. Investors will make requests to withdraw their stablecoins from the pool.
If the stablecoins are available to withdraw i.e. the stablecoins have not been used to pay suppliers in a transaction chain, then the smart contract will enforce withdrawal back to the investor's wallet.
If the stablecoins are not available to withdraw i.e. the stablecoins have been used to pay suppliers in a transaction chain, the the smart contract will wait until liquidity becomes available to enforce withdrawal back to the investor's wallet; whether that is due to a customer payment or new investors enter the pool.
Alternatively, trading on secondary markets such as DeFi AMMs is available 24/7/365 subject to liquidity and allows investors to sell their bond tokens on the open market.
The sukuk proprietary smart contract infrastructure is hard-coded Sharia compliant. The mechanisms deployed for funding transactions in deal chains are based on the following Islamic Finance principles:
Sukuk smart contracts are open to everyone including non-muslims and our philosophy of wealth building is on the basis of profit participation from revenue-generating businesses.