The RCN Credit Marketplace enables borrowers around the world to request funds on their own terms by posting crypto-collateral. With predictable and competitive interest rates and a wide variety of adjustable variables, Peer To Peer (P2P) DeFi borrowing is now a highly personalized experience.
Thanks to their P2P mechanism, the Credit Marketplace’s DeFi Loans have no spreads between borrowing and lending APRs.
With ten adjustable variables available, DeFi Loans’ borrowers can now request funds putting their needs and preferences first.
P2P Loans’ APRs don’t vary during their term, allowing borrowers to know how much they will pay from the first day to the last.
In order to provide a highly personalized borrowing experience, the RCN Credit Marketplace’s P2P borrowing mechanism allows its users to request loans choosing almost all their terms.
The Borrowing Currency is the currency in which the loan and its interests are denominated.
The Borrow Amount is the amount the borrower is requesting from a lender, denominated in the Borrowing Currency.
The Repay Amount is the amount of capital plus interest the borrower has to pay back to fully repay a loan, denominated in the Borrowing Currency.
The Annual Rate is the annualized interest rate paid by the borrower and earned by the lender for funding the loan (without taking compound interest into account).
The Duration indicates the amount of time the borrower has in order to repay the loan, before its collateral gets partially or totally liquidated.
The Expiration Time indicates the amount of time the loan request will remain active before expiring, if it isn’t funded by a lender.
The Collateral Amount is the amount of funds that the borrower has locked to back the loan.
The Collateral Ratio is the proportion between the value of the collateral and the value of the borrowed funds.
The Liquidation Exchange Rate is the exchange rate at which the Collateral Ratio will reach the Liquidation Ratio.
The Liquidation Ratio is the value of the Collateral Ratio at which the collateral will get partially or fully liquidated.
The Safety Ratio is the value the Collateral Ratio will reach after a collateral liquidation.
The Current Exchange Rate is the current price ratio between the Collateralization Currency and the Borrowing Currency. This variable can be verified but not defined by the borrower.
The Instalments indicate the number of evenly distributed and equal payments in which the Repay amount will be repaid. Each of these payments implies another due date in the loan’s repayment schedule.
The Oracle, represented by its Ethereum address, supplies the exchange rate used to calculate the equivalence between amounts denominated in the Borrowing and Lending Currencies. This variable can be verified but not defined by the borrower.
RCN blockchain-based borrowing eliminates unnecessary friction, allowing borrowers to start requesting loans in three easy steps.
Access theCredit Marketplace
Select your borrowing conditions, including Currency, Amount, Annual Rate and Duration.
Choose your Collateral Currency, Amount and Ratio and confirm the transaction. That’s it!