BNPL Pay is set to launch an uncollateralized lending protocol to connect DeFi Lenders with real world borrowers, using an innovation of decentralized banking nodes.
The BNPL Pay protocol has come up with an innovatively designed trust network that manages to overcome the issues with DeFi capital being lent into the traditional TradeFi space.
Long been seen as the holy grail of DeFi, the traditional finance lending sector is in the trillions. DeFi Lenders will be able to realise greater and more sustainable yields than are currently offered in the Crypto space.
AAVE has been exploring the potential with uncollateralized lending via its credit delegation but has yet to overcome the inherent issues surrounding the counterparty risk, with lending to off chain borrowers.
“I truly believe that DeFi as it’s now growing all the time, it’s becoming pretty much like a vacuum of liquidity where we will see more and more funds going in, then the next step will be the thing, how do we get those funds out of the system.”
Stani Kulechov, Founder & CEO AAVE - The Next Frontier in DeFi @ ETH CC #4
The BNPL Pay Protocol has been developing a new approach based on game theory and alignment of agent incentives. The foundation believes that decentralized banking nodes taking on counterparty risk assessment and backing that assessment with bonded capital as a form of insurance is the solution. Lenders will be able to see all the data required to make an informed decision on which node to lend their capital to.
The BNPL Pay protocol is audited by Hacken & will be launching a bug bounty campaign on the largest platform in the field - ImmuneFi.
The BNPL Pay team has a strong connection to the traditional finance space, particularly in BNPL (Buy Now Pay Later), which has been one of the hottest trending areas of the last few years. Amazon, Paypal & Square have all entered the space of late. The team has stated that it envisions BNPL companies being among the first to benefit from the capital available in the cryptocurrency arena.
BNPL Pay with it’s innovative new blockchain technology will be one to watch for 2022.
The BNPL Governance token is currently trading on Sushi Swap and MEXC Global with a current market cap of around $9 Million.
About BNPL Pay
BNPL Pay is a decentralized lending protocol that puts credit in the hands of those who need it the most, namely, those who cannot meet the requirements to take on collateralized loans. To that end, they have created the BNPL Pay Protocol, an uncollateralized lending platform that services such a need. The Protocol tackles the counterparty risk associated with uncollateralized borrowing through a distributed network of Banking Nodes. The tasks of credit checks, risk assessment and other due diligence requirements are delegated to pool operators, and creates a set of incentive structures that reward and punish these operators based on performance.