What is Vendor Finance? Vendor is a Lending Protocol platform, but Vendor’s model is quite similar to AAVE at the beginning. What is interesting and different about Vendor’s model compared to the current Lending model? Let’s find out in the article below.
What is Vendor Finance?
Vendor Finance is a Lending Protocol platform built and developed on Arbitrum’s ecosystem. In addition, Vendor also operates with a number of criteria and advantages of the project as follows:
- There are no liquidations.
- Fixed interest rates for both borrowers and lenders.
- There are fixed and clear terms in the loan.
Currently, Vendor Finance is accepting assets such as WETH, CUMAMI, PLVGLP, RETH, UMAMI, XCAL, GMX, DPX, WBTC, CRV, MIM, DAI, USDC, USDT and FRAX as collateral as well as collateral. loan assets.
Mechanism of Action
For lenders
- Step 1: Choose the type of collateral you want to receive from the borrower.
- Step 2: Choose the type of asset you want to lend.
- Step 3: Choose ratio. For example: If a borrower mortgages 1 WBTC, they can borrow $5,000.
- Step 4: Choose a maturity date for the loan.
- Step 5: Choose fixed loan interest rate and APR.
- Step 6: Recovery of debt, interest or collateral.
For borrowers
- Step 1: Choose a loan that matches the criteria of interest rate, maturity date, collateral,…
- Step 2: Submit collateral.
- Step 4: Pay back the loan and interest rate according to the contract.
- Step 5: Get back the mortgaged property.
- Step 6: Rollovers if eligible and desired by the user.
Rollovers are a solution that allows you to resolve the problem with delinquent loans. Normally, users who want to renew an old loan must settle that loan and create a new loan. But Vendor Finance allows all debt and collateral to be moved to a new pool to save costs for users with some conditions such as:
- The new pool must have the same lending assets and accepting assets as collateral.
- The loan term of the new pool must be greater than the loan completion time of the old pool.
- Both pools must have the same lender.
Core Team
Vendor Finance’s development team includes 4 people: Taiga (aka Tai) – Lead of the protocol development engineering team, Lorem – Team leader of UI/UX, DeFi Ellie – Head of Design and Team YettyWapp – In charge of building community & partners.
All members of Vendor Finance’s development team are anonymous, something that often happens with projects on the Arbitrum ecosystem.
Investor
The project has not announced any investments by VCs in Vendor Finance.
Tokenomics
The project has not issued tokens yet.
Information Channel of Vendor Finance Project
- Website: https://vendor.finance/
- Twitter: Vendor Finance (@VendorFi) / Twitter
- Medium: Vendor Finance – Medium
- Discord: discord.gg/kJBAC3G2pY
Summary
Vendor Finance is aiming for a direction that is not new but also has many differences compared to other Lending Protocol platforms on the market. Vendor Finance’s model will be mainly suitable for individuals with clear and detailed borrowing and repayment plans. Besides, if developed on a large scale, businesses can completely become Vendor Finance customers. .
