Pawnfi
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Pawnfi Modules
Users can easily combine any modules within one single contract.
In Pawnfi, we believe any standard or non-standard assets should be able to obtain cash flow through the form of collateral and we are willing to help increase the turnover rate of the entire crypto asset market. While asset holders can place any of their asset as collateral to do the fund-raising from the crowd, the product form of Pawnfi will significantly solve the problems of non-standard asset pricing and circulation, fill the market gap of non-standard asset financing tools, and other loan products on the market which currently cannot enter into this business.
In the Pawn module, all parameters can be customized by the borrower, including the flexibility of asset type, borrowing cycle, interest rate, repayment method, and even the form of fundraising (Crowd-Lending / Pool-Lending / Fast Loan). All the parameters above can be selected and combined by the borrower freely. Even though Pawnfi's pawn module is designed to solve the Non-Standard Asset market's pain points, it is also applicable to standard assets. Pawnfi is also in the middle of final testing to achieve higher borrowing flexibility and capital efficiency for mainstream assets such as ETH and WBTC.

Lease

Pawnfi's leasing market can support asset holders to obtain cash flow by transferring asset use rights under the premise of retaining asset ownership. The target group that wants to lease or use the asset in the market is the lessee, who can obtain the right to use the asset after placing deposit. Pawnfi generally requires the amount of deposit to be the target Sale Price plus Haircut to mitigate the risk of lease default. When the lease agreement is completed, the asset's liquidation and delivery will be automatically completed among the lessor, the lessee, and the lender.
Pawnfi is the first product to realize the separation of ownership, use rights, and income rights. It will be very suitable for mortgage lending of functional assets, such as cloud computing power tokens. When token holders pledge their assets Later, the loan cash flow can be obtained, but the cash flow of computing power lease can be obtained simultaneously, which comprehensively improves the use efficiency of assets.

Sale

On one hand, when an asset holder initiates a contract (no matter Pawn or Lease), they can easily combine with a Sale contract to strip the asset's ownership and create liquidity in different angles.
On the other hand, Pawnfi follows the idea of pawn shop. For lenders, the point of maximizing benefits is not only to obtain interest income, but also to resell undervalued assets to obtain excess returns when default happens. Therefore, resale of collateral asset is a way of realizing assets in Pawnfi, which is also a feature of Pawnfi's liquidation concept.

Auction

Not only supporting asset to be listed for sale, Pawnfi encourages all users to hold their own auction freely on chain.
Currently Pawnfi does not support users to initiate an Auction with Pawn, Lease or Sale, but we will come up with the best practice to enable combination.
Pawnfi's Appraisal is an independent module that applies to relatively rare NFT types or long-tail assets. It needs to be emphasized that the price from the Pawnfi appraisal mechanism indicates the appraisement for loan price rather than for selling price, that is the loan amount that the appraiser is willing to provide based on the collateralized asset, instead of the selling price of the collateralized asset. Based on the concept of pawning, to reduce the default risk of asset holders, Pawnfi's appraisers will tend to lower the loan valuation of the collateralized assets. Therefore, this appraisement can be regarded as the lower limit of the asset's price.
In Pawnfi product, specific requirements should be met by appraisers to participate in appraisement. For example, appraisers need to lock their appraisal amount in smart contract to improve the authenticity. With the future iteration of the Pawnfi product, we will continue to optimize the entire appraisal process, make plans if the appraisal sample number is small, and develop effective anti-cheating mechanism.

Wrap

Other than initiating a contract for single assets, Pawnfi introduces the concept of "Basket Collateral", which is common in Security Lending Borrowing from traditional finance, to boost the asset utility as a whole. That is, asset holder can wrap up multiple assets and initiate one single contract for them. This function will become the best match to low value NSAs' utility as they can form as an add-on to main assets.
Last modified 2mo ago