How We Worked With Centrifuge And The Maker Foundation To Advance $60,000 Worth Of Spotify Revenue Paperchain Follow Oct 30, 2019 · 9 min read

At DeFi Summit London, Paperchain & Centrifuge leveraged funding from the Maker Foundation, one of the teams contributing to the Maker Protocol, a decentralized finance protocol, to advance US$60,035 in Spotify revenue to a Paperchain record label customer.

Author: David Gogel (Paperchain)

Editor: Daniel Dewar (Paperchain)

Tl;dr

At DeFi Summit London, Paperchain worked with Centrifuge and the Maker Foundation (“Maker”) to advance $60,000 USD in Spotify revenue to a Paperchain record label customer;

While media consumption has shifted to streaming and on demand models, the revenue and payments process hasn’t changed;

Revenue from a Spotify stream can take 3 months to reach a record label; 6 months to reach an artist. $100 billion USD sits trapped in 90 day accounts receivables across the wider digital media industry;

The advance was issued live on stage using Centrifuge’s Tinlake finance application, and was originated in less than 30 minutes at a transaction cost of less than $3 USD;

Decentralized Finance (DeFi) has the potential to disrupt traditional financing and secured lending products through programmatic, data-driven asset creation, and low origination costs

Executive Summary

This document describes the process of tokenizing synthetic account receivables from digital media companies to issue short-term secured loans. This is demonstrated in the pilot transaction outlined below. The loans are originated by Paperchain, with the intention of being used as collateral in the Multi-Collateral Dai Credit System through integration with the Tinlake administration system developed by Centrifuge.

The pilot provides a roadmap for digital media companies to tokenize real-world assets and pledge them as collateral in decentralized finance (DeFi) applications, enabling industry participants to access credit from a fully open and permissioned financial system run by smart contracts.

Entities & transaction team

Paperchain

Daniel Dewar (Co-founder/CEO)

Rahul Rumalla (Co-founder/CTO)

Dave Tomaselli (Co-founder/CRO)

David Gogel (Advisor/Finance lead)

Polsinelli (Legal)

Paperchain transforms media analytics data into revenue insights enabling businesses, artists and creators to advance their future revenues instantly.

Centrifuge

Lucas Vogelsang (Co-founder/Head of Engineering)

Lea Schmitt (Product Partnerships)

Dennis Wellmann (Product Manager)

Martin Quensel (Co-founder/COO)

Centrifuge is a blockchain software developer that has built a peer to peer network for data exchange, a set of smart contracts on the Ethereum blockchain and user interfaces for issuing Non Fungible Tokens (NFTs). Centrifuge developed the Tinlake system which allows minting ERC20 Tokens from Centrifuge-originated NFTs for use as collateral in the Maker Protocol.

Maker Foundation

Greg DiPrisco (Head of Business Development)

Maker Legal Department (various members)

Cyrus Younessi (Head of Risk)

Maker has contributed significantly to the development of the Maker Protocol, a smart contract platform on the Ethereum blockchain that backs and stabilizes the value of Dai, a collateral-backed cryptocurrency, with a value stable to the U.S. dollar.

Transaction timetable