Lenfi P2P (Aada V1) delivers an entirely decentralized way of lending and borrowing primitives through P2P interaction. The process allows users to create liquidity requests and lock up ADA or other CNTs approved by the community as collateral. In turn, lenders can choose requests from the list of overcollateralized loans and lend through a smart contract. Liquidity requests and deposits are fully customizable, meaning borrowers and lenders can choose the loan parameters. The latter include Loan token type and size, Collateral token type and size, Loan duration, Interest, and Loan request expiration.
Every borrower and lender receives a bond token as proof of loan. NFT Bonds are not tied to a wallet address and are freely transferable and tradeable. Ultimately, the beauty of the Aada NFT Bonds comes with their utility: Whoever owns the Bond becomes the loan issuer or receiver.
With the Borrower’s Bond, the user must repay the loan, pay the accrued interest, and receive collateral, whereas, with the Lender’s NFT, the user can claim the lent tokens.