Where are we heading
The protocol will enable anyone to underwrite. Underwriters will be able to assess businesses and stake junior debt capital on them. In return for doing this work, they’ll receive higher yields via commissions from passive senior debt investors. This will allow the protocol to scale the underwriting process and onboard new lending businesses entirely through the community.
The protocol will support smaller and smaller lenders who don’t already have loan servicing infrastructure to the point where anyone can make loans, even individuals. The protocol will do this by bringing end-user loans on-chain, providing self-serve lender tools, and building upon a vibrant underwriter marketplace.
Investor/lender who wants to exit their position on a RTL can sell their loan on the Risk Tokenized Loan Exchange.
The Risk Tokenized Loan is a product we will launch to create nearly zero-risk lending. First, SMEs or reputable lending businesses ask for a loan, then retail submit funding for these loans, and then the principal money collected from retail generates interest on insured and overcollateralized margin lending.
The generated interest is given to SMEs and reputable lending businesses, who in return pay back the interest. At loan maturity, the principal funds are returned to retail. So, retail ends up with their initial money back, plus interest from SMEs and reputable lending businesses. Fees will be collected from a portion of funding generated by SMEs and reputable lending business, and from a portion of interests received by Risk Tokenized Loan holders.