BNPL Pay unsecured loan protocol to host its token sale on Balancer
2021 has truly been the year of DeFi – an industry that has continued to experience sustained growth over the past few months, even through the stock market crash that affected cryptocurrencies. Ethereum may be the most popular platform supporting DeFi projects, but other blockchain networks are catching up and nibbling its market share – from Binance Smart Chain and Solana to even THORChain.
Several promising DeFi projects are riding this wave of popularity, launching themselves on various blockchain networks. BNPL Pay is one of those projects worth exploring in the THORChain ecosystem. The decentralized lending protocol allows users to access capital through unsecured borrowing. The BNPL payment protocol is expected to launch its initial IDO on the Thorstarter Launchpad on September 14, which will involve the developers handing out 5 million BNPL tokens, priced at $ 0.04. The price of the token was set at the same rate at which the project sold tokens in its private sales.
BNPL: Buy now, pay later
BNPL is an interesting concept that allows anyone with available capital that they want to lend to become a banking node. The protocol will consist of a decentralized network of such banking nodes, providing services to those looking to take out unsecured loans. The project aims to solve the problem that centralized and traditional banking services pose for some users – preventing them from taking out loans when they need it most without any collateral.
Although the BNPL Pay protocol is not the first decentralized lending protocol in the DeFi space, what sets it apart is its goal of serving people with no capital and no collateral. Several named protocols, including AAVE and Compound, have established themselves in this space but have failed to make much headway in the credit space, where BNPL Pay will stand out. While other projects that have tried to stand out in the same space have failed to gain much traction due to the emphasis on borrower reputations – which only the bigger players with more capital could be successful, this protocol will reduce risk by increasing the number of borrowers and serving them through centralized banking nodes within their network.
BNPL Pay will take advantage of a competitive mechanism, putting those who set up banking nodes in competition for capital from lenders and for the execution of loans from borrowers. The level of incentive in the DAO ensures that node operators are rewarded with a percentage of interest accrued in the pool, while the tokens put into play could also be reduced in the event of a loss of funds.
Learn more about Thorstarter
Thorstarter, which claims to be the first decentralized community-run DAO Venture, is one such protocol that relays liquidity between the THORChain network and other long-tail crypto assets. It relies on a unique launch pad model and even offers funding for promising projects in the THORfi and DeFi sectors via liquidity grants. The IDO on the Thorstarter Launchpad will allow interested users to exchange their XRUNE tokens for BNPL tokens, by committing as many XRUNE tokens in BNPL Pay over a 24 hour period.