Hi, Thank you for the write up.
But I don't understand, the return is still 5%, so what is your 121% is about in second case ? A PPT holder has the choice of selling his PPT on an exchange. So if I have $4545 worth of PPT ($10 on exchange), I can sell it and use the cash to lend on the platform, and get 227 pokens, compare to use the PPT, with 20% loss in value (0.8 factor) I then get 181 pokens interests. So why you say it is better ?
Could you help define ho you calculate the ROI ? please use current PPT price, let say $10...it can't be compared to $0.3 ICO price because at any moment one can decide to sell its PPT on exchange and we are evaluating the investment opportunity as holding or not holding PPT token as today (ie PPT=$10 for the example).
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The ROI is based on the intial amount invested. PPT is held as collateral and never sold unless you choose to sell your PPT. PPT is used to access the liquidity pool (see my other posts) to funds the purchase of invoices. When the invoice settles the PPT is return back to you + the interest. Once PPT returned to you, you can re-use the PPT again to access the Liquidity Pool to buy more invoices. Repeat, wash and rinse.
Have you heard about the "Secret Sauce"? When PPT is $10, you have $8 purchasing power. When PPT is $100 you have $80 purchasing power. You take advantage of price appreciation of PPT when buying invoices.
If you use fiat to purchase invoice worth $4545, you need $4545 and return is 5%, the ROI is also 5%. If you purchased PPT at very low price at say $0.33 and the value of PPT goes up to $10 (say, in the example) then you have a purchasing power equivalent of $4545 for initial investment of $1500. Hence return of 5% but ROI of 121%.