Peer to Peer lending

The Borrower

To start with, the Distant lending platform will allow users take crypto loans against their collateralized NFTs by matching them with individuals funding the loan. This brings back the idea of one to one interaction in the lending market There is no loan-to-value ratio set for this kind of transaction as usually, its based on the terms set by the borrower when listing the NFT in the first place. If the terms are agreeable or favorable by the lender, they can chip in to fund the loan. Among this terms set by the borrower:

  • The NFT used as collateral.

  • The loan amount the lender is to fund with.

  • Number of days in which the loan is regarded valid.

  • The interest to be paid at the end of the loan period.

When a borrower creates a loan request, the NFT intended to be used for the loan will be locked in an escrow and will only be released after the loan and interest has been repaid

The Lender

When the terms are agreed by the lender and he approves the contract to spend and transfer the funds to the borrower, a set of transactions will be carried out to move the funds from the lender's wallet to the borrower. All this will be executed by smart contracts that ensures the security and reliance on a trustless system The lender gets to enjoy a fixed return or a discounted NFT

There are plans in motion to integrate or build our on-chain communication protocol that notifies users signed up to the service of a new loan request to fund.

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