Bonds.org is a pioneer in decentralized asset lending on Cardano, allowing enthusiasts to take full advantage of lending and borrowing opportunities.
Bonds.org offers low-cost financing to borrowers in need of liquid loans, allowing them to borrow without the need to liquidate their crypto assets; lenders can earn a substantial interest rate for meeting the liquidity needs of others.
The whole process consists of 2 parties engaging in decentralized way:
- The lenders, who can lend their liquid crypto assets in return for an interest rate
- The borrowers, who put up collateral (crypto funds/ NFTs) to secure a loan
The collateral serves as a guarantee - the lender is always safe in the thought that were anything to go wrong, the collateral will serve as a form of compensation.
The ecosystem functions similarly to P2P lending. Lenders and borrowers are connected via bonds.org platform. Lenders can allocate their crypto assets at custom rates. Borrowers can take out a loan for a margin trading or for personal use - with a commitment to repay the borrowed cryptocurrency at the agreed upon interest rate.
Visit bonds.org to learn more.
- V1 will create a completely new NFT-based market segment, enabling the use of NFT in acquiring loans;
- V2 will facilitate the introductions of fractional lending, enabling orders to be split between multiple users;
- V3 will introduce a lending pool model, pivoting away from the traditional peer-to-peer lending model