HOW TO TEST THE PROTOCOL
Here is an overview of how the project works. You will need to have a web3 wallet like Metamask(Download MetaMask: The Premier Blockchain Wallet App and Browser Extension) installed and the network set to Bitfinity testnet, the EVM cannister on ICP(MetaMask | Bitfinity Documentation).
Reign Protocol
Reign Protocol operates as a decentralized credit infrastructure provider, facilitating connections between digital asset (crypto) investors and investment opportunities tied to small and medium-sized business (SMB) economic activities. Our platform demonstrates the practical application of a Credit Fund functioning as a borrower, which in turn aggregates and lends to small businesses.
We strongly believe that embracing decentralized finance can effectively address the financial inclusion challenge by offering the following advantages:
For Borrowers:
- Access to global digital asset liquidity, providing a sustainable and cost-effective solution for borrowers in emerging markets.
- Utilization of Blockchain-based on-chain borrowing, ensuring speed, security, and the creation of an immutable credit history that can attract significant capital inflows.
For Investors:
- Empowerment of any digital asset holder to participate as a lender, supporting real-world economic activities.
- Provision of stable and sustainable yields
We aim to establish a progressively decentralized community (DAO) comprising underwriters, auditors, service providers, asset originators, developers, and investors. Our incentive mechanism is designed to promote positive behavior and address centralized decision-making across the network.
HOW IT WORKS
On the protocol, the borrower creates a loan request providing the needed details and the needed collateral document and they submit these details which are captured and stored on-chain. This request is now visible on the dashboard.
Borrower submits borrow request
Borrower Dashboard
Borrower creates a borrow request
Borrower submits a collateral document
Borrower submits loan application
Underwriter reviews the application and makes decision
The request then goes to the underwriter dashboard and they can decide to approve based on the information provided. This will then be available to the investors to invest in.
Underwriter dashboard showing the new loan request received
Underwriter can approve or reject based on the application and the docs submitted
Past underwriter decisions
Investors
So, when a junior pool investor invests in part of that opportunity, it will be partly funded up to the amount provided by the investor.
Senior pool investors invest in a blanket pool, a general pool which aggregates the funds and allocate them to the various opportunities.
Junior Investor investing
Investor pools
Senior Pool
Withdrawal & Repayment
When an opportunity becomes fully funded, it becomes available for withdrawal by the borrower and the loan payment terms are shown on the dashboard. During repayment, the borrower pays back the loan premium, the loan is updated with the next due amount and the net due date.
Loan request succesfull, funds available for withdrawal
Making Repayment
Repayment
