NURVIA -RTL (Risk Tokenized Loans)

Building RTL (Risk Tokenized Loans)

NURVIA is a decentralized lending platform for loans without collateral. This is the missing piece that finally unlocks crypto lending for most people in the world. We are presenting NURVIA, a protocol building one of the biggest missing pieces of DeFi: loans without collateral. We believe this is the crucial step that finally opens crypto lending to the majority of the world. By decentralizing the process, DeFi can unlock an entirely new layer of underwriting capacity by allowing anyone to be a lender, not just banks. To get there, we’re starting in emerging markets, which have the most unmet demand.

Why loans without collateral matter

In the past month, the total amount borrowed across crypto networks passed $4B, up from less than $200M a year ago. Yet even this growth dramatically underestimates the true potential of DeFi. That’s because all of this lending is overcollateralized. For every $20.00 someone borrows on these networks today, they must first put up ~$30 of another asset they already own. This collateral requirement holds the whole system back. These loans are only useful for a sliver of borrowers — primarily margin traders and crypto holders who don’t want to sell their positions. But for everyone else in the world, the reason they want to borrow in the first place is they don’t already have the money they need. Removing this collateral requirement is key to crypto breaking out into global debt markets. DeFi has a massive opportunity to transform access to capital, but it will only be possible once it can make loans without collateral. That’s what will finally open crypto lending to most people in the world. And that’s what we’re building with NURVIA.

Unlocking the untapped underwriters

Enabling loans without collateral is just the first step. The second step is doing it through a decentralized network that allows anyone to participate. We believe this will foster a whole new level of lending activity that can’t get funded today. Traditionally, it’s expensive for banks to underwrite because they don’t know their borrowers. This sets a threshold for the kinds of lenders that can operate, and it cuts out the long tail of what’s possible. We spoke with one person in Jakarta, for example, who wants to finance motorcycle purchases for people doing deliveries on foot, and another person in Lagos looking to make micro-loans within their community. They need $30K, or even just $4K to get started. But they don’t have the capital, and it isn’t worth the banks’ time.

But what if the community could power this? What if we could remove the overhead of banks and offer these opportunities to the collective judgment of people around the world? There’s a vast untapped layer of underwriting potential from the thousands, if not millions, of people who can identify and assess new sources of credit. By decentralizing the underwriting process, DeFi can allow anyone to lend in a way that banks simply can’t today.

Starting with emerging markets

From the beginning, we want to build for the borrowers who can benefit most and where crypto can have the greatest impact. We will start with lending businesses in emerging markets. They have the most to gain (and the highest demand) because the inefficiencies of traditional finance limit the capital that can flow into these markets. It’s also where crypto truly shines with its liquidity and international reach.