RCN is a network of key DeFi and CeFi service providers that interact with each other through an open-source set of Ethereum smart-contracts to connect credit markets’ supply and demand and enable frictionless lending and borrowing use cases.
DeFi (Decentralized Finance) P2P loans are requested by retail borrowers within the crypto ecosystem. They are denominated in cryptocurrencies and backed by crypto-collateral locked in a smart-contract. The funds obtained through them are usually employed to finance the borrowers’ leveraged investments.
CeFi (Centralized Finance) loans are requested by corporate borrowers, economic entities that exist beyond the crypto ecosystem. They are denominated in either fiat or crypto currencies, and backed by their borrower’s reputation. The funds obtained through them are usually applied to satisfy the Originators’ general financial requirements.
The Loan Life Cycle describes all the different actions that a borrower and a lender might perform on a loan, and the related status it acquires after each of them.
The RCN Token is an ERC-20 token, Ethereum smart-contract, and one of the currencies that allows users to receive, repay and collect loans on the RCN protocol.