What is Vendor Finance?
- Choose a collateral to accept
- Choose the token you want to lend
- Set a fixed interest rate or a decaying rate.(There is an ability by the lender to change the fee later on to make sure it is still appealing to borrowers. This change would not affect people whom borrowed prior to the rate change. Once you borrow, your interest rate is locked in to whatever you agreed upon at the time of transaction.)
- Seed the lending pool with liquidity
- Optional: Create pools with future dated expirations to allow for rollovers and perpetual loans
- Collect repayment, interest owed and any defaulted collateral at the repayment due date
- Select a loan
- Deposit collateral
- Receive your loan
- Pay back your loan + interest owed at the repayment due date to receive your collateral back
- Optional: Default on your loan and keep the lent tokens (in the case your lent tokens are more valuable then your collateral)
Last modified 29d ago