How does it work?
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Liquidity Request - The Borrower creates a Liquidity Request with custom parameters such as Collateral, Interest, Term, and type of asset to be borrowed.
The Borrower can cancel the request before it is funded.
Funding the request - The Lender can select a request using the integrated filters.
Liquidity Desposit - The Lender creates a Liquidity Deposit with custom parameters such as Collateral, Interest, Term, and type of asset on offer.
The Lender can cancel the Lender request before it is funded.
Finding a Borrower - Every Borrower can select a deposit to take using the integrated filters.
Interim period - The Borrower must return the loan + interest before the loan deadline. In the event of failure, the Lender can liquidate the loan and receive the Collateral as compensation.
Post-loan scenarios:
The Borrower successfully repays the loan, and the Lender claims his assets + accumulated interest.
The Borrower fails to repay the loan on time, and the Lender triggers a liquidation.
Every loan is secured by a Health Factor solution implemented to protect lenders against dramatic drops in collateral value. Whenever the Liquidation Threshold falls below 1.00, the Lender can manually liquidate the loan using the .
