Capx Lend
The cryptocurrency and digital blockchain assets market has developed into a vibrant ecosystem of investors, speculators, and traders, exchanging thousands of blockchain assets. Unfortunately, the sophistication of financial markets hasn’t followed: participants have little capability of trading the time value of assets.Interest rates fill the gap between people with surplus assets they can’t use and people without assets (having a high-yielding or investment use); trading the time value of assets benefits both parties and creates non-zero-sum wealth. For blockchain assets, two vital flaws exist today:
  • Borrowing mechanisms are minimal, contributing to mispriced assets (e.g., “scam coins” with unfathomable valuations because there’s no way to short them).
  • Blockchain assets have a negative yield, resulting from remarkable storage costs and risks (both on-exchange and off-exchange), without natural interest rates to offset those costs, leading to volatility, as holding is disincentivized.
Capx Lend platform unlocks liquidity of the Wrapped Vesting Token holders by putting these tokens and collateral and borrowing against them.

Use Case

Scenario : A user wants to Lend an asset for a wrapped vesting token or Borrow against a wrapped vesting token.

  • The borrower submits a proposal on the loan amount required, and the value of wrapped vesting tokens to be put as collateral and the rate of interest of the loan.
  • A suitable lender looks at the proposal and negotiates / approves the terms.
  • Upon negotiating suitable terms regarding rate of interest and collateral amount , lender approves the proposal submitted by the borrower.
  • Post approval, the wrapped vesting tokens are locked in escrow by the smart contract and the borrower receives the requested funds.
  • Upon passing of the stipulated time , the loan is repaid along with the interest.
  • The lender receives their principal amount and the interest and the wrapped vesting tokens kept as collateral are released back to the borrower.
Capx Lend Use Case
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Use Case