The Expansion

Last updated 3 years ago

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The Expansion

Throughout our updates and releases, Feeder Finance P2P Lending will grow its use cases from simple token collateral/lending to NFT lending and finally Decentralized Lending Exchange (“DLEX”).

Here is the flow of improvements:

Q1-2022

Launch P2P Lending with Lender and Borrow Offers and Bids

Q2-2022

Marketplace created for the trading of loans; through its embedded NFT technology
Adding support for lending and borrowing of NFTs

Q3-2022

Adding DLEX functionality, which in simple terms are a pooled P2P lending structure allowing exchanging of tokens between lenders and borrowers using fixed terms set by lenders. This would essentially allow lenders to “be their own bank/pawnshop”.

How do any of these products/features improve DeFi?

Basic P2P Lending: Allows any token to be lent or borrowed, creating liquidity for investors that otherwise would not be possible.
Better Economics with Receipt Tokens: As the collateral grows in value/quantity, borrowers are able to reduce their borrowing cost; in some cases even eliminate it. In turn, lenders are also able to demand higher rates. A win-win scenario for both parties.
Insuring Yield Farming: As investors yield-farm with vaults, they could see those assets as risky, be it from price fluctuations or exploits, and seek insurance options. Taking out a loan effectively offers partial insurance coverage of those assets.
The Loan Marketplace: P2P lending has one pain point, it locks up capital for the lender. The launch of the marketplace not only gives the lender liquidity but also allows for long-term loans to be created as lenders would be more willing to lend if they are able to exit prematurely.
DLEX: Creating loans on an individual basis allows for opportunistic lenders or borrowers to strike advantageous deals. Nonetheless, lenders wanting to scale their lending business could opt for a pooled option where terms are set and funded in advance, letting borrowers come in with assets that meet the terms and automate the lending process.

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Last updated 3 years ago

Was this helpful?

Throughout our updates and releases, Feeder Finance P2P Lending will grow its use cases from simple token collateral/lending to NFT lending and finally Decentralized Lending Exchange (“DLEX”).

Here is the flow of improvements:

Q1-2022

Launch P2P Lending with Lender and Borrow Offers and Bids

Q2-2022

Marketplace created for the trading of loans; through its embedded NFT technology
Adding support for lending and borrowing of NFTs

Q3-2022

Adding DLEX functionality, which in simple terms are a pooled P2P lending structure allowing exchanging of tokens between lenders and borrowers using fixed terms set by lenders. This would essentially allow lenders to “be their own bank/pawnshop”.

How do any of these products/features improve DeFi?

Basic P2P Lending: Allows any token to be lent or borrowed, creating liquidity for investors that otherwise would not be possible.
Better Economics with Receipt Tokens: As the collateral grows in value/quantity, borrowers are able to reduce their borrowing cost; in some cases even eliminate it. In turn, lenders are also able to demand higher rates. A win-win scenario for both parties.
Insuring Yield Farming: As investors yield-farm with vaults, they could see those assets as risky, be it from price fluctuations or exploits, and seek insurance options. Taking out a loan effectively offers partial insurance coverage of those assets.
The Loan Marketplace: P2P lending has one pain point, it locks up capital for the lender. The launch of the marketplace not only gives the lender liquidity but also allows for long-term loans to be created as lenders would be more willing to lend if they are able to exit prematurely.
DLEX: Creating loans on an individual basis allows for opportunistic lenders or borrowers to strike advantageous deals. Nonetheless, lenders wanting to scale their lending business could opt for a pooled option where terms are set and funded in advance, letting borrowers come in with assets that meet the terms and automate the lending process.