In the cryptocurrency market, lending may no longer be unfamiliar to most DeFi (decentralized finance) users. Today, let’s take a look at a fairly new project in this field!
What is PWN?
PWN is a peer-to-peer cryptocurrency lending platform. The platform accepts a variety of collateral, usually popular cryptocurrency series such as DAI, LINK, APE or NFT.
Features of PWN
Diversified collateral
PWN allows users to use fungible tokens and non-fungible tokens (NFTs) as collateral for loans.
Practical interface
The PWN user interface will provide users with important information, including:
Token data available on the chain (ERC20, ERC721, ERC1155): name, symbol, number of units owned, asset history, etc.
Data obtained from the token issuer API (MetaDataURI): images and token information
Price information is obtained from exchanges, markets and other third-party APIs
price setting policy
For fungible tokens, PWN will get price data from third-party APIs such as Coinecko, while for non-fungible tokens (NFTs), the platform will get price data from major exchanges such as Rarible, OpenSea or SuperRare.
PWN does not use an asset whitelist approach (allowing specific asset classes to trade). To prevent fraudulent tokens, PWN will have a mechanism to verify token contracts. Only tokens that have passed this verification will be allowed to be used on the platform.
In the future, PWN will have its own NFT pricing mechanism, which will set prices based on the following criteria:
NFT creators
Scarcity
Novelty
applicability
Market conditions
Asset Class Performance
Expert Opinion
loan
PWN allows users to use fungible tokens and non-fungible tokens (NFT) as collateral. When a user creates a loan proposal on PWN, the platform automatically issues an NFT to prove ownership of the collateral.
Users need to provide the following information when applying for a loan:
Property Type
Collateral amount (can be fungible or non-fungible tokens)
Date of Expiry
Once the loan application is approved, the funds will be forwarded to the borrower’s address, and the collateral will be locked in a smart contract. The NFT represents the ownership of the collateral and will be transferred to the lender.
The borrower's collateral will only be unlocked if the credit and interest are fully repaid before the contract expires. Otherwise, the collateral will be vested in the lender.
loan
Borrowers can select any loan request. When the new project goes live, users will have the right to set the price of the loan. In the later stages of development, PWN will provide suggested prices based on the historical price trends of the same assets.
To be approved for a loan, borrowers will need to provide the following information:
Type of loan asset (fungible token or non-fungible token)
loan amount
interest rate
Token information about the PWN project
Currently, the project has no plans to issue tokens. I will update you as soon as the project has more information.
Summarize
PWN is a peer-to-peer lending protocol that allows borrowers and lenders to freely choose their partners. In addition to cryptocurrencies, PWN also allows users to use NFTs as collateral. Through this article, I hope you have learned the necessary information about this project. See you in the next article.
