Lending and Borrowing

For Lenders.

We have the only platform that checks all of the boxes needed for traditional finance to utilize DeFi lending innovation. We bridge the safety and security of TradFi with the innovation and revenue generation of DeFi in a regulatory compliant way.

Lenders can manage their own pools of assets to be lent. They can determine their own rates, acceptable collateral, and their own terms for their lending pools.

The system is designed so that there is no risk to lenders. When the collateral underlying the loan reaches the point where its value is equal to the loan’s value, it auto-liquidates, and the value is returned to the pool. This algorithmic solution provides extraordinary security and safety for lenders.

The entire platform is designed at a fundamental level around the needs of traditional financial institutions. Assets are held with institutional-grade fraud and theft protections. Companies have unique private key loss protections available only on our platform. Privacy is assured through regulatory compliant mechanisms. Bailment for stable coins and other RWA’s is implemented with no platform risk, and assets are institutionally insured.

The control of the loan terms and the protections for converting collateral are maintained at the validator level on the blockchain, using an on-chain loan definition. There are no smart contracts used, providing significantly better security.

Because there are no smart contracts, there is no transfer of assets related to collateral, and therefore there are no unwanted tax consequences.

For Borrowers.

Borrowers get instant access to the value underlying their collateral. The borrowing process is dramatically easier and more straightforward than traditional loans. You simply put your assets up for collateral and receive your loan, such as in the form of a stablecoin, to use as you desire.

Borrowers can access underlying value in tax-preferred strategies, as defined by a user’s local regulatory and tax requirements.

Because smart contracts are not used, and the controls for loans are managed at the validator level, both borrowed funds and collateral are managed in a more secure methodology. There are no unwanted tax consequences from transferring assets into a smart contract platform, and the overall system is dramatically safer to use than smart contract platforms.

Managing loans is straightforward. Unlike traditional finance lending approaches, there are no monthly payments and no defaults for missing a payment. Instead you simply manage the “health” of a loan (i.e., the ratio of the value of the collateral to the loan amount). As a borrower, you manage the loan by making sure that the collateral value does not approach the loan amount. Borrowers are in full control of a loan’s health, and even with volatile assets, a loan’s health can be maintained.

The same asset-level protections that make the platform appealing for lenders also protect borrowers. Borrower’s collateral is protected with validator-level controls. If you maintain the health of your loan, your collateral is safe. Borrower’s assets, whether collateral or the loan itself, are protected with fraud and theft protections, private key loss protection, privacy, and absolute platform security with respect to wrapped tokens. Additionally, institutional asset managers can trust the safety and security for their clients who want access to a traditional finance-compliant lending protocol.

Lending and Borrowing.

For Lenders.

For Borrowers.