Solution Overview
Integrating Structured Finance with Blockchain Technology
Last updated
Integrating Structured Finance with Blockchain Technology
Last updated
The Profit Share Token (PST) Protocol addresses e-commerce liquidity gaps by tokenizing a share of real-world merchant profit, derived from captured revenue, into tradable digital assets that yield stablecoin dividends. PST merges traditional finance principles with blockchain's transparency, accessibility, and automation.
How PST Works: The Core Mechanism
PST creates a token distributing regular stablecoin dividends from e-commerce revenue:
Revenue Capture: Merchant sales revenue is automatically directed via integrations (e.g., payment gateways) to a smart contract controlled bank account.
Automated Processing: The smart contract then automatically:
Segregates Profit Share: Isolates the pre-agreed percentage of revenue - default is set at 10%.
Converts to Stablecoins: Converts this profit share to stablecoins, transferring them to the PST Dividend Wallet.
Remits to Merchant: Returns the remaining revenue (e.g., $90) to the merchant.
Dividend Distribution: Monthly, accumulated stablecoins in the Dividend Wallet are distributed pro-rata to PST token holders and Liquidity Pool.
This ensures only the agreed profit is tokenized, merchants receive their operational revenue promptly, and investors earn stablecoin dividends from e-commerce profits.
Structured Investment Products
Beyond the core token, PST supports structured products like Senior (Fixed 11-13% APY) and Junior tranches. These are backed by diversified pools of tokenized profit shares from various merchants, allowing investors to tailor risk and return.
Key Features & Benefits:
Direct Profit Share: Dividends from clearly defined, auto-segregated merchant profits.
Automated & Transparent: Smart contracts manage the full flow, all on-chain for auditability.
Merchant Benefits: Access capital by sharing future profits, with seamless integration and prompt revenue remittance.
Accessible Yields: Opens access to e-commerce profit-sharing yields.
In Essence: PST captures e-commerce revenue, tokenizes an agreed profit share for stablecoin dividends, and returns the rest to merchants. It offers automated growth capital for merchants and real-cash-flow-backed yields for investors.