Kriptoks

BNPL Pay (BNPL) is a decentralized lending protocol that aims to provide credit to those who lack the necessary capital. The platform utilizes a unique design in which a decentralized network of banking nodes services the industry's needs. Anyone can apply for a loan or become a bank by creating a banking node through the BNPL Protocol.

The protocol uses a decentralized network of centralized banking nodes (CeDeFi) to service a maximum number of loans. This system allows for banking nodes to have full autonomy in their individual operations while providing lenders with full transparency of each node's track record and other relevant metrics. With this approach, BNPL can maximize utility for both borrowers and lenders.

Uncollateralized lending presents inherent credit and counterparty risks. BNPL addresses these risks by merging the borderless, permissionless world of Ethereum with the segregated and widely varying rules of the legal world. The CeDeFi model allows for anyone to lend capital or set up nodes, which are centralized to delegate tasks for the legal world and service loans based on their abilities to mitigate counterparty risk.

To manage capital, node operators must stake a minimum of 2,500,000 BNPL tokens and are rewarded with a percentage of interest accrued by their pool. Additionally, node operators and independent stakers can become further involved through BNPL's vouching system, where additional tokens can be staked into a node. Risk and reward are shared equally with the node operator. In the event of default loss, any penalizing action taken against nodes and stakers will be rewarded directly back to lenders as a form of rebate. They can judge which pools to commit capital to based on the Staked Asset to Liquidity (SATL) ratio of a given pool.

BNPL Pay token generation event (TGE) was on 14th September, creating 1 billion BNPL tokens at genesis. 42.50% of the tokens will be rewarded to lenders and liquidity providers of BNPL via exponential decay. Additionally, 1% of the supply will be airdropped to active users in DeFi. 12.5% of tokens were sold during a seed round, followed by 10% of tokens sold in a private sale and 6% in a public sale. The BNPL Treasury will be holding 14% of tokens for operational requirements, and the final 14% are allocated to team members.

BNPL Pay is backed primarily by TradeFi corporate advisory experts with significant understanding of, and experience in, the fintech and BNPL sector. Australian based Clee Capital, a key backer, has a history of success in funding and advising BNPL players in South East Asia over the last 12 months. Several crypto funds with strong ties to the Thorchain ecosystem are also early investors. The project's execution team is made up of 9 experienced individuals with a plethora of experience in DeFi and traditional finance. The team spans the globe with presence in Australia, Singapore, United Kingdom and Dubai. In addition, the project has retained Dentons for legal counsel, and Hacken for smart contract auditing in order to ensure access to the best advice available in a space that still has substantial regulatory and security risks.

Overall, BNPL Pay aims to provide credit to those in need while mitigating credit and counterparty risks through a unique design that merges the Ethereum world with the legal world. With the backing of experienced individuals and early investors, BNPL Pay has the potential to become a prominent player in the BNPL sector.