Overview

The Proof-of-Collateral (PoC) framework is the foundation of Positions Finance, designed to unify asset management across protocols and chains. It unifies liquid and staked assets across multiple chains and protocols into a single NFT-based representation, offering an interoperable collateral model that eliminates inefficiencies like bridging, liquidity fragmentation, and redundant collateral setups.

This NFT acts as a dynamic, composable instrument that can be leveraged across various DeFi protocols, unlocking "credit liquidity" while preserving the yield-generation capabilities of the underlying assets across “yield vaults”. Users can seamlessly access liquidity for diverse use cases, including borrowing, trading, and staking/looping, without relinquishing their yield-earning positions.

Proof-of-Collateral (PoC) introduces a new paradigm of DeFi by incorporating a composable layer of financial utility, reducing capital inefficiencies, enabling interconnected ecosystems, and enhancing liquidity optimization. It bridges the gap between traditional financial structures and decentralized innovation by consolidating assets into a versatile, actionable collateral proof. This framework not only streamlines operations but also fosters a more efficient and composable financial ecosystem, setting the stage for the next generation of decentralized finance.

Core Value Proposition

Rehypothecation of Yield Vaults

Yield-generating assets often remain locked in single-use vaults, forcing users to choose between earning rewards and accessing liquidity for other activities. This leads to underutilized capital, loss of opportunity, and inefficiencies across ecosystems. PoC addresses this by enabling users to unlock "credit liquidity" by rehypothecating staked assets while retaining their yield-earning capabilities. This dual functionality maximizes the utility of assets, allowing users to borrow, trade, or reinvest without sacrificing rewards.

Composability

DeFi applications often operate in isolated silos or sandboxes, restricting the broader utility of assets and complicating integrations. PoC introduces a composable framework designed keeping these inefficiencies in mind. It enables any protocol or application to seamlessly integrate and accept PoC as collateral, functioning similarly to a smart wallet.

Users can leverage their PoC or the rehypothecated collateral across diverse use cases such as borrowing, trading, leveraging, staking/looping, payments, and more. The composability factor of PoC ensures low integration effort while maintaining robust security for the adopting platforms, enabling developers and platforms to adopt it with ease—maximizing asset productivity and liquidity across ecosystems.

Interoperability

Cross-chain interactions is often plagued by costly/sometimes slow bridges and inefficiencies, restricting the mobility and utility of assets. PoC’s interoperable design bridges these gaps by offering a unified collateral standard represented as an NFT, operable across multiple chains—enabling users to leverage their assets across multiple apps and ecosystems simultaneously. This solution enhances liquidity, reduces operational friction, saves time/cost, and empowers cross-chain financial participation.