Overview of System
1. Who is the interested party for this collateral application?
ShuttleOne is a digital asset blockchain infrastructure company that builds systems that support governments, institutions and business to business platforms. ShuttleOne services the Southeast Asian region in remittances, microlending and trade financing.
Founded in Singapore in 2018, ShuttleOne has built a network of fiat on/off ramps for digital assets across Southeast Asia and China.
About Global eTrade Services (GeTS)
Global eTrade Services (GeTS) is a subsidiary of CrimsonLogic. Its mission is to power global trade connectivity by making trade more accessible, predictable, and easier to fulfil. The company has linkages to 61 Customs nodes across the world, with more than 175,000 connected parties and conducting 24.1 million transactions annually.
GeTS has a suite of logistics, compliance, and financial products under its wing. Products and services include CALISTA, TradeWeb, OTB, and many more. CALISTA™ is a global supply chain platform that brings together the key regulatory and financial activities of logistics in a digital ecosystem. For certain trade routes, GeTS have visibility and control of the entire supply chain. GeTS achieves this with its service coverage and strategic port partnerships.
Shuttle One Pte Ltd
Keith Steven Muljadi
Board Non-Executive Director
2. Provide a brief high-level overview of the project, with a focus on the applying collateral token
CALISTA™ powered by ShuttleOne
Bringing together both digital logistics prowess of GeTS’ flagship product CALISTA and ShuttleOne’s ecosystem, ShuttleOne’s defi infrastructure supports CALISTA Finance by way of financial risk management in a A.I powered credit scoring for the financial and business viability of merchants in the supply chain with financial data.
ShuttleOne maps the fiscal health of the merchant applying for a loan alongside port operations data to get a complete picture of the business viability of these merchants in asset based cargo movements utilizing a mix of NFT and ERC20 Tokens that provides onchain and offchain management of trade financing and operational oversight.
Merchants are able to apply for a loan anywhere globally where GeTS has port and custom linkages. So far, CALISTA Finance powered by ShuttleOne has serviced more than 30 over merchants in 2020 within Southeast Asia and China in over US$300,000 of trade financing.
Port Operators can verify goods’ and trades’ legitimacy (i.e physical checks on cargo in storage awaiting shipping). This is achieved by strategic partnerships with port operators globally.
The data GeTS possesses provides oversight of cargo movement and powers financing decisions. Financiers have greater confidence to finance trades that they have sight over. Trade data is also used within financier’s credit assessments. This provides them with a deeper understanding of borrowers from not only financial data but also alternative operational data. This sharpens their risk management of credit disbursement. CALISTA Insights also provides trade-related data to empower lending decisions.
On-Chain Risk Assesment: Risk Assessment Token (RAT, ERC721)
During the process of risk assessment and verification of cargo, ShuttleOne captures basic merchant information and tokenizes the merchants’ financial data and port operational data into a non-fungible token in RAT. RAT tokens data are stored on chain and can be easily verified by parties within the supply chain logistics platform from operations to finance.
- Data Captured:
- Master Bill of Laden
- Customs Declaration
- Packing List
- Agent Agreement
- Buyer/Seller Details
- Invoice of Cargo
- Other Logistics Operational Data
Compliance in Finance
The hypothesis of the credit risk weighted model is as follows:
At any given random day towards maturity, the borrower has predicted ability to repay the trade financing
The methodology is a statistical model to predict quality outcomes of
- Operational Data combined with Credit assessment of merchant provides an all round analysis of fiscal performance of credit and scoring
Let be the probability that the event occurring where , the the odd ration can be defined as
Therefore, the credit risk weighted model is as follows:
log(Odds)=β0+β_1 x_1+⋯+ βnxn
The Weighted Evidence (WE) is utilized by applying operational data correlation using the Kolomogorov Smirnov (K-S) as a performance measure against standard deviation of the calculated parameters given a coefficient for confidence that risk governance will decide over a given period of time.
Thereafter, the score card can be calculated with the following:
Score=(A-B* β0+∑(-WEi *β_i)
- Β -operational data regression coefficient of data attributes
- β0-operational data regression intercept
- WE-Weight of Evidence value for the given operational data
Operational Data is collected via platforms of operational partners where correlations between operational data of merchants are scored alongside standard deviation of cash flow analysis and weighted into a score percentage of a maximum of 1000 basepoints as a form of risk management combining not only credit cashflow analysis but also operational data of merchant in assessment for risk.
Aside from financial data and port operational data utilized for risk assessment, ShuttleOne also ensures process control and assessment to compliment these on-chain assessments as described below under Section 8.
The Applying Collateral: Credit Application Token (CAT, ERC20)
Merchants’ data as risk assessed above are thereafter issued CAT token(s) according to the invoice of cargo requesting for credit.
The applying collateral is the Credit Application Token (CAT). It has the following metrics:
Addressable Yearly Cargo Assets: US$800mil
Average Yearly Interest Rate (APY): 9% APY
Trade Finance Tenure: 30 Days - 60 Days
Estimated Average Trade Financing Ticket Size: US$50,000
[UPDATE ON ADDRESSABLE MARKET SIZE WITH NEW PORT OPERATOR 18 Aug 2020]
3.1 Overview of GeTS main products and services
|Product and Services||Overview|
|CALISTA Logistics||Provides services such as freight booking and freight management…|
|CALISTA Freight eXchange||A marketplace to connect buyers and sellers for freight forwarders|
|CALISTA P!ng||Track and trace of goods|
|CALISTA Finance Powered by ShuttleOne||Provides services such as cross-border payments, trade financing, and business insurance.|
|CALISTA Compliance||Facilitate trade declaration, import, and export permit applications to Customs authorities globally.|
|CALISTA Insights||Flexible middleware that provides instant access to trade, logistics, freight data that businesses can use for insights.|
|TradeWeb™Live!||A platform that facilitates permit declaration to Singapore Customs.|
|OTB||Permissioned blockchain for industry partners and networks to improve visibility and security.|
Freight Booking allows users to check shipping schedules, book, and manage freight services for FCL, LCL, and multi-modal services (provided by Carrier/NVOCC).
Shipping Instructions facilitate filing of Shipping Instruction. This is achieved with cargo details and requirements for physical transportation. Companies can submit Shipping Instructions to Carriers and view the draft Bill of Lading.
CALISTA Logistics also covers haulage services. Firms can make haulage service booking through confirmed Freight Bookings.
CALISTA Freight eXchange
CALISTA Freight eXchange facilitates RFQ, booking, invoice management and verification, and online payment. It is a marketplace of logistics service provider listings.
CALISTA P!ng provides end-to-end visibility on cargo movement and status. Users can receive timely alerts and notifications for prominent events. This enhanced visibility enables better planning and management of cargo and downstream processes.
CALISTA Compliance digitalises the filing of trade compliance documentation. Users can submit compliance-related documents such as Shipping Instructions on the platform.
TradeWeb is an integral part of GeTS’ compliance coverage in Singapore. Customers can streamline their cargo declaration process using TradeWeb™Live!. TradeWeb sends declarations to the Singapore Customs and other controlling agencies directly…
Users complete their permit declaration on the platform. They can declare all kinds of permits, from imports, exports to air, land, and sea permits.
CALISTA Finance Powered by ShuttleOne
CALISTA Finance Powered by ShuttleOne takes advantage of the blockchain for basic financial services in trade financing and value transfers.
ShuttleOne was a connection into CALISTA to enable CALISTA Finance with partnered terminal/port operator in Singapore operational processes in ASEAN.
- Utilizing alternative port operational data to improve credit scoring for merchants
- Collateralizing cargo assets onto the blockchain complying with strong offline operational processes to safeguard defaults
- Perform remittance/pay transactions in cross border trade financing in a compliant manner in digital assets
- Operationalize Computer Vision, Algorithmic Credit Scoring to automate Financial Risk Management
ShuttleOne conducted businesses in ASEAN wide between May 2020 - July 2020.
12% APY (0% Default)
US$30,000 (Third Party Deposits)
[UPDATE ON ON-GOING TRIALS 18 AUGUST 2020]
4. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.
Linkages of CALISTA systems into ShuttleOne
Initiation of Trade
Trade documentation is uploaded into the ShuttleOne systems by port operators
Export of Goods
ShuttleOne gets a signal within the cargo trade systems that cargo is prepared and ready for export
Completion of Trade
Cargo Systems Signals Payment has been made to ShuttleOne’s fiat off/on ramps and merchants repays smart contracted loans via Collateral Manager
We are currently undergoing audits via various government appointed ministries. On the blockchain front, we’re also undergoing code audits with several prominent code auditors in the blockchain space.
The CAT token provides on chain visibility to the amount of risk assessed trade finance that is being requested for within the ShuttleOne infrastructure. The CAT token has these characteristics:
CAT Value: Hard Pegged 1:1 to Dai (Issued 1:1 based on Cargo Documentation)
Token Type: ERC20
Token Supply: Based on Credit Application for Trade Financing
Backed By: Cargo Assets Against Bill of Lading
The CAT token is used as an onchain representation of debt based on cargo in transit for trade financing.
8. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?
The collateral’s responsibility resides and is reinforced in the countries that the borrowers reside in. Typically these are B2B merchants applying for a loan in their local jurisdiction(s).
To work with cross border trade financing, ShuttleOne has signed agreements and operational partnerships with the relevant port operators to confiscate collateral for and begin liquidation should there be a case of default.
The Off Chain to On Chain Overview is as follows:
The off chain legality of control resides in a partnership with the Collateral Manager (port operators) and ShuttleOne. The Collateral Manager assumes the role to confiscate goods and liquidate should there be a default.
The exchange of the asset occurs within the dex of ShuttleOne (between funders and borrowers).
10. (Determined by Legal Domain Team) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.
ShuttleOne is currently an “Exempt Status” company applying for the Digital Payments Licensing Act in the Republic of Singapore. We are allowed to conduct business (having notified the Authority) until our licensing is granted or rejected.
Quote: “Please note that these entities are not licensed under the PS Act to provide the specific payment services, but are allowed to continue to provide the specific payment services. The exemption will cease after the specified period; or if the entity submits a licence application under the PS Act, on the date that the application is approved or rejected by MAS, or withdrawn by the applicant.”
It is the view of our lawyers and application to the Monetary Authority of Singapore that our systems facilitate basic financial services in value transfers and trade financing as a technology provider.
11. (Determined by Legal Domain Team) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.
We’ve filed the following with the Monetary Authority of Singapore in our interaction with the Singapore jurisdiction amongst other more sensitive information.
DAI Feeds (https://www.liquidityproviders.io/)
Collateral Invoices (CALISTA & Cargo Trade Systems)
13. (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.
We are sensitive to the type of cargo that we are financing (choice via HS CODE and Credit/Risk Assessment Models) we are building liquidators and collection agencies processes working closely with the port operators and our partners.
Reason for the sensitivity, varying type of cargo requires different types of liquidators. At the moment we are focused on:
- Medical Supplies
- Wholesale food supplies
- Commodities (Oil & Chemicals)
The type of liquidators for these above mentioned segment are:
- Hospitals, Government Health Ministries
- Energy & Chemical Traders