DeFi For You: Building a peer-to-peer economy
Traditional loans are stringent and inaccessible to a lot of people, this could limit the access these people have to capital. This especially makes it difficult for small businesses and users to grow.
With the onset of DeFi or decentralized finance, the financial utility of blockchains is being explored. It is also allowing users around the world to take advantage of the system and become a part of decentralized finance.
DeFi For You is a platform that allows users to offer loans and become their own bank on their own interest rates.
What is DeFi For You?
DeFi For You is creating a decentralized P2P (peer-to-peer) lending system where users can get a loan by collateralizing their NFT, crypto, and hard assets.
It is based on the Binance Smart Chain and aims to utilize the decentralized financial use case of blockchain. Trust and reputation are an important part of a lending system as some people are more likely to pay back a loan than others.
The DeFi For You platform moves an irrefutable and verifiable reputation system onto the public ledger (blockchain) and ties it with decentralized finance, thereby making loans accessible to anyone.
Smart contracts and reputation
When issuing a loan, the reputation of the borrower is important as it helps determine whether or not the borrower would pay back the loan.
This need for reputation is eliminated in the case of irrefutable smart contracts as if the borrower defaults on the payment of the loan their collateral would be liquidated automatically.
The platform still has a trust score that can be seen next to the users which would help determine if the borrower would make the repayments on time or not.
Licensing and regulations
Abiding with local laws and regulations is essential to build trust with user bases. Keeping this in mind, the DeFi For You platform is regulated and licensed by the Financial Conduct Authority (FCA) in the United Kingdom.
With the FCA regulation, DeFi For You can legally offer their financial and pawnbroking services to their clients in the UK and elsewhere around the world.
Services and features
As mentioned earlier, the platform allows users to get loans against their hard assets which makes them the first platform to do so. Users get the chance to store, loan against, and trade their hard assets on the blockchain apart from crypto and NFTs.
By allowing their users to use NFTs as collateral, the platform gives them a chance to earn from their NFTs. Users can also buy and sell them on the DeFi For You platform.
The platform also allows users to open their own pawnshop by using trusted intermediaries to hold the collateral for loans. This would enable users to enter the crypto space without the need for a bank account.
The DFY token and its distribution
DeFi For You or DFY is a BEP-20 compatible token on the Binance Smart Chain with a total token supply of 1,000,000,000. The token has a BEP20-BEP2 bridge which would help to facilitate cross-chain exchange.
Currently, 861,416,467 are existing with 200 million tokens being locked in the reserve for 5 years, whereas 285 million tokens are locked for a period of 2 years for research and development. Another 233 million are to be staked and 45 million are reserved for the founders and the team.
The platform has a quarterly burn protocol which helps to increase the value of the token and decrease its overall supply.
DFY use cases
The DFY token can help users open their pawn shops on the DeFi For You platform as these shops are split into tiers depending on DFY ownership. It is free for P2P users while users would need $10,000 worth of DFY tokens to open a self-finance pawnshop for physical collateral. To open a pawnshop with financial backing for large loans from the platform, users would need $40,000.
The DFY token can also be used as gas for transactions on the DeFi For You platform. Those users who participate in staking and farming will also get rewarded with the token.
Decentralized Finance Governance
DIG or Decentralized Finance Governance along with its native DIG Chain are going to be launched soon with the functionality of governing the DeFi For You platform. Apart from that, the DIG Chain can be useful in carrying out crypto loans with underlying physical assets such as real estate as collateral.
Almost $280 trillion worth of real estate has the potential to be tapped into and the DIG Chain is providing users with the ability to loan or trade against real estate easily.
It would create compartmentalized blockchains that aim to fund real estate development in local markets, all of which would operate under the sub-chains of DIG.
Conclusion
DeFi For You is utilizing the use case of blockchains and DeFi and combining them with pawn brokerage services. Thereby providing users with a peer-to-peer lending platform that can be helpful for anyone who wants to use borrow or lend.
The platform is not only the first in P2P lending but also in allowing hard assets to be collateralized on the blockchain. The need to have a certain reputation is also eliminated due to smart contracts.
DeFi For You provides users with an innovative solution, one which can have greater use cases in the future.
For more information on DeFi For You, please check out their website.
Disclaimer: This is a paid post and should not be treated as news/advice.
OhNoCrypto
via https://www.ohnocrypto.com
Anjali Sriniwasan, Khareem Sudlow
