What is Pawnfi? Pawnfi is a Defi platform that introduces the concept of “pawning” to the world of blockchain and cryptocurrency.
So what’s special about this project? Let’s find out with Weakhand in this article.
What is Pawnfi?
Pawnfi is the first Defi platform to introduce the concept of “pawning” and create a non-standard asset (NSA) lending and leasing market.
Non-standard assets (NSA) on the Pawnfi platform include not only tokens but also NFTs, LP tokens, bonds, derivatives, etc.
Pawnfi builds the Pawnshop (mortgage lending), rental and resale market. Objects in the market can be mentioned as:
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Asset holders: These are people who hold non-standard assets and want to generate cash flow from them. They can create pawn (mortgage) contracts, lease or resell their assets depending on the terms of their contract.
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Borrower: Use your non-standard assets to borrow an amount of capital. To ensure safety for borrowers and asset holders, the loan amount is smaller than the value of the collateral.
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Renter: As people want to use non-standard properties, they will pay a deposit to rent them. They have the right to use the property and return it when the lease ends.
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Buyer: A person who wants to buy non-standard assets for sale on the Pawnfi platform.
Sale: Liquidation occurs when the loan exceeds the borrower’s collateral, then the asset holder can auction or sell the asset simultaneously on Pawnfi and other platforms.
What is the Pawnfi Difference?
Pawnfi is a multi-chain platform that supports many chains such as: ETH, BSC, Polygon, Arbitrum and Moonbeam. Pawnfi and has integrated multi-chain instances in the same user interface, so assets will not be fragmented and user experience will be significantly improved.
Because there are many different non-standard assets, the market size and risk level are different. Therefore, Pawn has implemented 3 different approaches to mortgage loans as follows:
- Crowd-Lending: This method is designed for assets with low capital turnover rates. The method involves pooling together loans from multiple lenders to create a larger pool available to the borrower. This helps minimize the risk of default and ensures that lenders can earn a reasonable return on their investment.
- Automatic Pool-Lending: This method is designed for highly liquid assets. It involves using automated systems to create and manage loan pools, which are then used to offer loans to borrowers. This approach allows for more efficient and streamlined lending, while also providing lenders with a degree of risk management and diversification.
- Fast Loan: This approach is designed to balance the performance and risk needs of all asset classes. It involves using a combination of manual and automated processes to deliver loans quickly and efficiently to borrowers. This approach is especially useful for borrowers who need quick access to liquidity.
Core Team
Wesley Kayne : Co-founder & Chief Executive Officer
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He graduated with a bachelor’s degree in finance from National Taiwan University.
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He has worked at Bank of America Merrill Lynch as an equity research analyst since June 2016.
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After that, he moved to work for DBS Bank as Business Analyst from June 2018.
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In November 2019, he joined StartUp Pawnfi company and is holding the position of Chief Executive Officer.
Guy Ip : Chief Product Officer
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He graduated with a master’s degree from the University of Washington.
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In September 2017, Anh joined DBS Bank as a senior advisor.
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After more than 2 years of working, in May 2019 he decided to quit his job and join StartUp Pawnfi and is currently holding the position of Chief Product Officer.
Investor
November 15, 2021: Pawnfi announced the successful call for $3M, this investment round is led by Digital Currency Group (DCG) and also includes other investment funds such as: Polygon, Animoca Brands,…
Tokenomics
Update…
Pawnfi Project Information Channel
- Website: https://pawnfi.com/
- Twitter: https://twitter.com/pawnfiofficial
- Medium:
summary
Pawnfi is an interesting platform that brings services that seem to only exist in real life into the blockchain world. Hopefully this article has helped you understand a bit about Pawnfi.