Credore is a blockchain powered capital marketplace to enable real-world assets to gain access to financing. Trustless Capital will also enable crypto investors to lend against real world assets and will provide sustainable yield opportunities.
Credore protocol will extend credit lines to institutional borrowers or the lending businesses. Institutional borrowers will be called as Pool Owners in the protocol since Under writers will create for them to pool to manage it. These Pool Owners use their credit lines to draw down stablecoins from the pool, and then they exchange it for fiat and deploy it on the ground to end borrowers in their local markets. In this way Credore will provide the utility of crypto while leaving the actual loan origination and servicing to the Pool Owners best equipped to handle it.
On the lending side, stablecoin holders can deposit stable coins such as USDC into the pool to earn yield. As the lending businesses make their interest payments back to Credore, they’re immediately disbursed to all lenders.
Credore Protocol will be used by three core participants: End Borrowers, Lenders and Pool Owners.
End Borrowers are participants who are seeking finance. Pool Owners will withdraw the required fund from the liquidity pool to be deployed to End Borrowers. Liquidity pools are governed by smart contracts managed by Pool Owners. End Borrowers can liaise with Pool Owners to confidentially complete the loan assessments.
Lenders supply capital to the senior pool of professionally managed lending pools in order to earn passive yield.
Pool Owners are the institutional borrowers who are into lending businesses. They are credit fund experts or institutions who will launch and manage lending pools. They each develop their own investment strategy and underwriting process for determining creditworthiness of the end borrowers. Pool Owners can leverage their reputation to borrow undercollateralized without constant fear of liquidation and margin calls. End borrowers access pools of capital governed by smart contracts and liaise with Pool Owners to confidentially complete loan assessments.
A Lending Pool is the smart contract through which Pool owners borrow and repay capital. Any Pool Owner can create a Lending Pool and define the terms they want:
- Interest Rate: Fixed interest rate APR, e.g. 15%.
- Limit: Total capital that can be borrowed, e.g. $1M.
- Payment Period: Frequency of interest payments, e.g. every 30 days.
- Term: When the full principal is due, e.g. 365 days.