Azima

Azima is a fintech startup with a crypto token and decentralised application allowing users to conduct P2P trading between fiat currency and digital assets

A P2P transaction is simply when two people can complete a transaction without a centralised authority like a bank or exchange. The Azima ecosystem is unique because it relies on users to complete transactions rather than exchanges. With Azima, we will reward users who help to complete transactions and secure the network with the ability to earn money passively, and get premium rates on services, encouraging usage and growth in the de-fi space.

Unique Lending Protocol

Within our P2P exchange is our unique lending protocol which sets us apart from other providers, leveraging state of the art security and Cardano's smart contract technology.

At Azima we share the principles of the blockchain we are founded upon, Cardano, principles of trust, care, and transparency, helping to improve financial inclusion and social empowerment for the people.

Ultimately our embracement of De-fi will help to redistribute power from unaccountable structures to the margins – to individuals – and be an enabling force for positive change and progress. .

Industry

DeFi

P2P Swap

Lending Protocols

Lending protocols in the DeFi world allow people to loan or lend money in a peer-to-peer manner, i.e. without the banking middleman. These loans are secured by the lender over-collateralizing the loan and the terms of the loan being managed in a smart contract. This gives the unbanked or those who have poor credit the ability to take loans, and it gives those with excess capital the opportunity to provide loans in a secure and trustless manner, and to earn income from them.

Over-collateralization means that the person receiving the loan locks up more than the value of the loan to secure it e.g. if they want to loan 100 they must lock up 150. How much they over-collateralize the loan by, and which tokens they use as collateral, depends on the platform. Some platforms only accept stablecoins, and other accept a variety of crypto assets. Typically, an individual uses one asset for collateral and takes a different asset as their loan.

An important factor in all loans is the interest rate and the length of the loan. These vary greatly by lending protocol, and loans can have fixed interest rates and periods, or infinite periods with interest rates that fluctuate throughout the loan period, fluctuating based upon the utilization rate of the pool of funds the loan was drawn from.

Importantly, the receiver of a loan is expected to maintain a certain ratio of collateral to loan, meaning that if the value of their collateral drops below that of their collateral to loan ratio, they need to add more collateral to keep the required balance. If they don’t keep up the collateral ratio they face liquidation and the loss of their collateral.

To "become the bank" those with idle tokens can deposit them into a lending protocol and earn from the interest derived from the loans their tokens are used to facilitate. Usually this deposit requires a lockup period of a certain length of time. Often, the longer the lockup period the higher the percentage return for the depositor.

Unique Lending Protocol

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