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DeFiner.org
A true peer-to-peer network for digital savings and loans.
USA, Minnesota
Market: Financial services, Blockchain
Stage of the project: Operating business
Date of last change: 21.05.2020
USA, Minnesota
Market: Financial services, Blockchain
Stage of the project: Operating business
Date of last change: 21.05.2020
Idea
● DeFiner solves multiple problems within the traditional financial space, including high interest rates, costly third parties, and geographical limitations to accessing financial services. DeFiner offers users a secure, seamless, and affordable method of borrowing, lending, saving, and transacting digital assets within a truly decentralized, peer-to-peer network, accessible anywhere, anytime, by anyone.
Current Status
Invested by Techstars, Nexcued.
One of Eight US Fintech Startups to watch out by Fintech News.
Won Detroit Fintech Challenges
One of Eight US Fintech Startups to watch out by Fintech News.
Won Detroit Fintech Challenges
Market
Market: DeFi lending is our target market, which is experiencing rapid growth. Assets under management topped over $1.2 billion in 2020, according to DeFi Pulse. Annualized loan volumes have grown to $2bn from nearly 600k transactions, according to LoanScan. Based on our own analysis and the Genesis Capital Q1 insights report, total aggregate digital asset volumes of all market participants totaled $20bn in 2019. This means that based on projections of the current market growth rate, digital asset loan volumes are expected to grow to over $1 trillion by 2025.
Problem or Opportunity
What is DeFiner?
● DeFiner is a true peer-to-peer fintech network for digital savings, loans, and payments.
What problem does DeFiner solve?
● DeFiner solves multiple problems within the traditional financial space, including high interest rates, costly third parties, and geographical limitations to accessing financial services. DeFiner offers users a secure, seamless, and affordable method of borrowing, lending, saving, and transacting digital assets within a truly decentralized, peer-to-peer network, accessible anywhere, anytime, by anyone.
What makes DeFiner unique?
● Unlike most blockchain-powered platforms for digital savings, loans, or payments, DeFiner is truly decentralized. The vast majority of crypto lending platforms are centralized, meaning that the company behind the platform acts as a custodian. This centralized approach fails to address the custodian risks and exposes user funds in a high-risk environment for theft or cyber-attacks.
● Cross-chain compatibility which allows integration with different blockchains through smart contract technology is another key competitive advantage of the DeFiner platform. Most decentralized lending platforms can only provide a lending marketplace for digital assets within one blockchain.
● DeFiner’s platform also supports a wider array of digital assets and cryptocurrencies than the majority of its competitors and is available for use 24/7 due to its decentralized architecture.
● DeFiner is a true peer-to-peer fintech network for digital savings, loans, and payments.
What problem does DeFiner solve?
● DeFiner solves multiple problems within the traditional financial space, including high interest rates, costly third parties, and geographical limitations to accessing financial services. DeFiner offers users a secure, seamless, and affordable method of borrowing, lending, saving, and transacting digital assets within a truly decentralized, peer-to-peer network, accessible anywhere, anytime, by anyone.
What makes DeFiner unique?
● Unlike most blockchain-powered platforms for digital savings, loans, or payments, DeFiner is truly decentralized. The vast majority of crypto lending platforms are centralized, meaning that the company behind the platform acts as a custodian. This centralized approach fails to address the custodian risks and exposes user funds in a high-risk environment for theft or cyber-attacks.
● Cross-chain compatibility which allows integration with different blockchains through smart contract technology is another key competitive advantage of the DeFiner platform. Most decentralized lending platforms can only provide a lending marketplace for digital assets within one blockchain.
● DeFiner’s platform also supports a wider array of digital assets and cryptocurrencies than the majority of its competitors and is available for use 24/7 due to its decentralized architecture.
Solution (product or service)
What is DeFiner?
● DeFiner is a true peer-to-peer fintech network for digital savings, loans, and payments.
What problem does DeFiner solve?
● DeFiner solves multiple problems within the traditional financial space, including high interest rates, costly third parties, and geographical limitations to accessing financial services. DeFiner offers users a secure, seamless, and affordable method of borrowing, lending, saving, and transacting digital assets within a truly decentralized, peer-to-peer network, accessible anywhere, anytime, by anyone.
What makes DeFiner unique?
● Unlike most blockchain-powered platforms for digital savings, loans, or payments, DeFiner is truly decentralized. The vast majority of crypto lending platforms are centralized, meaning that the company behind the platform acts as a custodian. This centralized approach fails to address the custodian risks and exposes user funds in a high-risk environment for theft or cyber-attacks.
● Cross-chain compatibility which allows integration with different blockchains through smart contract technology is another key competitive advantage of the DeFiner platform. Most decentralized lending platforms can only provide a lending marketplace for digital assets within one blockchain.
● DeFiner’s platform also supports a wider array of digital assets and cryptocurrencies than the majority of its competitors and is available for use 24/7 due to its decentralized architecture.
● DeFiner is a true peer-to-peer fintech network for digital savings, loans, and payments.
What problem does DeFiner solve?
● DeFiner solves multiple problems within the traditional financial space, including high interest rates, costly third parties, and geographical limitations to accessing financial services. DeFiner offers users a secure, seamless, and affordable method of borrowing, lending, saving, and transacting digital assets within a truly decentralized, peer-to-peer network, accessible anywhere, anytime, by anyone.
What makes DeFiner unique?
● Unlike most blockchain-powered platforms for digital savings, loans, or payments, DeFiner is truly decentralized. The vast majority of crypto lending platforms are centralized, meaning that the company behind the platform acts as a custodian. This centralized approach fails to address the custodian risks and exposes user funds in a high-risk environment for theft or cyber-attacks.
● Cross-chain compatibility which allows integration with different blockchains through smart contract technology is another key competitive advantage of the DeFiner platform. Most decentralized lending platforms can only provide a lending marketplace for digital assets within one blockchain.
● DeFiner’s platform also supports a wider array of digital assets and cryptocurrencies than the majority of its competitors and is available for use 24/7 due to its decentralized architecture.
Competitors
Competitive Advantage: With competitors such as Compound, Dharma, & DyDx, DeFiner stays ahead by relying on our strong team of experts, who have patents pending on methods of blockchain and smart contract lending, and for autonomous micro-payments. Our team can be found throughout the U.S., Europe, Asia, and Latin America, giving us the ability to do business and connect resources globally.
Advantages or differentiators
DeFiner: Why it's Different
Better returns to lenders, lower cost to borrowers, fixed terms and rates available
Instant loans with a much better interest than Compound
Payback with collateral
Fixed-term and Fixed-rate Loans
We have optimized the savings pool contract to ensure the best rate both for borrowers and lenders. Here's how:
Problems with Compound Finance:
On average, the Compound borrower rate is 3-5% higher than the depositing rate.
The interest rate earned by lenders is equal to the borrowing interest rate multiplied by the utilization rate. The utilization rate typically ranges from 40% - 75%, this means there is usually 25%-60% capital sitting there and earning nothing. This is the major reason that the spread between the borrowing rate and lending rate is so high.
Compound Finance supply and borrow rate on May 16, 2020.
DeFiner Optimized Borrow and Lend Rate:
DeFiner Savings has successfully resolved this issue by depositing the excessive capital to money market like compound or Maker to improve our capital utilization rate always more than 85%.
For example, let's say there is a total of one million USDC in the DeFiner savings account, and 50% have been lent out to borrowers. We now have half a million (500,000) USDC in excess capital. The DeFiner Savings contract will automatically deposit 0.35 million (350,000) USDC to the money market (at Compound Finance or Maker), which will then earning interest while the remaining 0.15 million (150,000) USDC will be held in reserve. This reserve ratio (now 15%) is adjustable and can be as low as 5%.
In the same scenario at Compound, 0.35 million (350,000) USDC will sit in their savings pool and earn nothing.
In this way, the spread between borrowers and lenders on DeFiner has been significantly lowered.
The chart below shows the interest rate comparison between DeFiner and Compound at different capital utilization rates. On average, DeFiner maintains an advantage of 2.46%. The largest advantage point happens at 51% capital utilization with an advantage of 3.65%.
Payback Loan with Collateral:
Another problem borrowers have is locked collateral. When they want to pay back the loan, they have to secure the funds to pay off the loan balance. However, their locked collateral cannot be used for this purpose.
DeFiner has an option for borrowers to pay back the loan with their locked collateral. To do so, the borrower pays a 2% fee to a 3rd party liquidator, which pays back the outstanding principle and interest on the loan. In exchange, the liquidator gets the equivalent amount of collateral with a 2% discounted price.
Fixed-term and fixed-rate loan:
A problem with the current DeFi market is that there is no fixed-term and fixed-rate loan option available. The most popular products are loans with floating rates and no terms. DeFiner provides an (over-the-counter) OTC loan solution offerings users fixed terms and rates.
DeFi OTC Loan: Aries
Fixed term, Fixed-rate;
Loan amount: >=1000$;
Terms: 4 weeks, 8 weeks, 12 weeks, 26 weeks and 52 weeks.
Both borrowers and lenders can fully customize their loans with individualized collateral, rates, terms, and currency. Users can scan available loans on the lending marketplace or submit their own request if they cannot find the loan they want.
Read more about these features here: DeFiner Products Introduction
***
Related Articles
The Basics
How do I get started with DeFiner?
What is the digital asset savings account?
What is peer-to-peer lending?
Better returns to lenders, lower cost to borrowers, fixed terms and rates available
Instant loans with a much better interest than Compound
Payback with collateral
Fixed-term and Fixed-rate Loans
We have optimized the savings pool contract to ensure the best rate both for borrowers and lenders. Here's how:
Problems with Compound Finance:
On average, the Compound borrower rate is 3-5% higher than the depositing rate.
The interest rate earned by lenders is equal to the borrowing interest rate multiplied by the utilization rate. The utilization rate typically ranges from 40% - 75%, this means there is usually 25%-60% capital sitting there and earning nothing. This is the major reason that the spread between the borrowing rate and lending rate is so high.
Compound Finance supply and borrow rate on May 16, 2020.
DeFiner Optimized Borrow and Lend Rate:
DeFiner Savings has successfully resolved this issue by depositing the excessive capital to money market like compound or Maker to improve our capital utilization rate always more than 85%.
For example, let's say there is a total of one million USDC in the DeFiner savings account, and 50% have been lent out to borrowers. We now have half a million (500,000) USDC in excess capital. The DeFiner Savings contract will automatically deposit 0.35 million (350,000) USDC to the money market (at Compound Finance or Maker), which will then earning interest while the remaining 0.15 million (150,000) USDC will be held in reserve. This reserve ratio (now 15%) is adjustable and can be as low as 5%.
In the same scenario at Compound, 0.35 million (350,000) USDC will sit in their savings pool and earn nothing.
In this way, the spread between borrowers and lenders on DeFiner has been significantly lowered.
The chart below shows the interest rate comparison between DeFiner and Compound at different capital utilization rates. On average, DeFiner maintains an advantage of 2.46%. The largest advantage point happens at 51% capital utilization with an advantage of 3.65%.
Payback Loan with Collateral:
Another problem borrowers have is locked collateral. When they want to pay back the loan, they have to secure the funds to pay off the loan balance. However, their locked collateral cannot be used for this purpose.
DeFiner has an option for borrowers to pay back the loan with their locked collateral. To do so, the borrower pays a 2% fee to a 3rd party liquidator, which pays back the outstanding principle and interest on the loan. In exchange, the liquidator gets the equivalent amount of collateral with a 2% discounted price.
Fixed-term and fixed-rate loan:
A problem with the current DeFi market is that there is no fixed-term and fixed-rate loan option available. The most popular products are loans with floating rates and no terms. DeFiner provides an (over-the-counter) OTC loan solution offerings users fixed terms and rates.
DeFi OTC Loan: Aries
Fixed term, Fixed-rate;
Loan amount: >=1000$;
Terms: 4 weeks, 8 weeks, 12 weeks, 26 weeks and 52 weeks.
Both borrowers and lenders can fully customize their loans with individualized collateral, rates, terms, and currency. Users can scan available loans on the lending marketplace or submit their own request if they cannot find the loan they want.
Read more about these features here: DeFiner Products Introduction
***
Related Articles
The Basics
How do I get started with DeFiner?
What is the digital asset savings account?
What is peer-to-peer lending?
Business model
Business Model: As we offer a lower fee than the market rate for digital asset lending, our main sources of revenue are transaction fees for each loan generated, technology license fees, and consulting services. Primary costs include product development, business operations, and customer acquisition. Overall, the total transaction costs will be significantly lower than traditional lending.
Money will be spent on
Product Development,
Customer Acquisition,
Operations
Customer Acquisition,
Operations
Team or Management
Incubation/Acceleration programs accomplishment
Techstars, Nexcubed
Won the competition and other awards
Detroit Fintech Challenges, 2019
Invention/Patent
Blockchain Application in Lending
Photos
Product Video
Presentation
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