DeFi Money Market

The DeFi Money Market we offer provides a comprehensive and secure platform for borrowers and lenders to engage in the transfer of funds. The market is designed to provide borrowers with the ability to access loans by collateralizing their $WTAO holdings while allowing lenders to supply $USDC for the loans at a pre-determined interest rate that is based on the borrower's KYC and credit score.

The lending and borrowing process in our system is underpinned by a robust, secure, and transparent mechanism of trust management. This is achieved through the utilization of on-chain credit scores. The credit scores provide a comprehensive and tamper-proof record of each borrower's creditworthiness, ensuring that lenders can make informed decisions when lending their assets. The on-chain credit score system eliminates the need for intermediaries, thereby reducing the cost of borrowing and lending and improving the overall efficiency of the lending and borrowing process. The use of on-chain credit scores also provides a secure and tamper-proof mechanism for protecting the interests of both lenders and borrowers, making the lending and borrowing process safe and trustworthy.

In order to ensure a fair and transparent process for all parties involved, the collateral liquidation process in our lending and borrowing market is based on a mutually agreed-upon time/date between the borrower and the lender, as opposed to being solely based on an oracle price feed. This approach provides a more predictable and reliable mechanism for the liquidation of collateral, as both parties have the opportunity to agree upon the terms in advance. This helps to mitigate any potential issues that may arise due to market volatility or other unforeseen circumstances, ensuring that the process is both fair and efficient. Additionally, our platform offers robust monitoring and reporting features that enable both borrowers and lenders to keep track of their positions and collateral at all times, further increasing transparency and reducing risk.

To participate in the NI DeFi Money Market, it is mandatory to undergo proper KYC verification. This helps to ensure that only reputable and trustworthy individuals and entities are able to participate in the market, reducing the risk of fraud and increasing the overall security and reliability of the platform.