[Issuer] Consolfreight Update May 2022: ConsolFreight helps Mastercard to test DeFi

Dear Community,

We are Ernesto Vila @EAV and Alejandro Gutierrez @AleG from ConsolFreight. This is the first of regular updates since we are now starting to continuously use our Maker vault. We also would like to thank you all for the trust and the RWF core team for their continuous support and guidance. Please do not hesitate to reach out to us with any questions.

We continuously grew our asset pool with new partners and a more diversified portfolio of borrowers and assets. One of the new partners is FreshSupplyCo (FSCO), a supply chain digitization firm based in Australia. They use Mastercard’s Provenance solution to track its shipments on a global level. In addition to providing traceability, FSCO prides itself on its ability to provide access to capital to its customers from both bank and non-bank lenders. In today’s accelerated environment, traditional financing has been slow and inefficient.

To fill the need for alternative sources of capital and faster approvals, Mastercard and FSCO approached Maker to explore options to meet the growing demand. Maker’s Growth CU was instrumental in bringing together Centrifuge and ConsolFreight to support Mastercard and FSCO. Over the past few months, we have been designing solutions, did the first transactions, and are now ready to proceed with the utilization of the Maker vault.

Here is a quick overview.

A shipment of Australian Beef from Brisbane to Hong Kong is currently being tracked using Mastercard Provenance for FSCO’s client and will be financed by the ConsolFreight pool on Centrifuge protocol. For this operation the seller submitted all the required documentation to FSCO using Mastercard Provenance, The protocol sent a payment trigger to Consol Freight indicating all conditions were met to execute the payment to the seller as the shipment was ready to depart the port. Consol Freight minted the NFT using the data of the commercial invoice together with the shipment data and drew down DAI from the Maker vault through the Centrifuge protocol. This transaction and all following transactions for this Mastercard pilot are fully in line with the existing covenants.

We will keep you updated on the progress and the lessons learned to build a more automated and scalable solution.

@EAV @AleG on behalf of all being involved!