π The launch of Bluejay Earn is on the horizon!
We put forth information in our documents for you to read through here:
docs.bluejay.finance/bluejay-earn-core-concepts/
But we understand you want someone to do the research for you, so here's the thread you are looking for!π§΅π
1/ TL;DR
- Bluejay Earn is a decentralized credit protocol with borrower pools.
- Lenders can invest with no min. required, fixed rates & duration.
- Borrowers can directly raise funds by efficiently using DeFi.
- Bluejay acts as a facilitator.
2/ What is Bluejay Earn, and how does it work?
Bluejay Finance acts as a marketplace for borrowers and lenders to interact and transact.
Borrowers can create loan pools to directly raise funds, and lenders can invest in these pools to earn a yield on their stablecoins.
3/ Why Bluejay Earn?
There are 2 underlying issues Bluejay Earn was created to solve:
- >60% of people in SEA are underbanked and lack access to formal financial services like credit.
- Investors lack access to a variety of financial products due to high barriers to entry.
4/ Who will Bluejay Earn benefit?
- Small businesses which contribute a large portion of the GDP and employ most of the local talent can leverage DeFi to get access to credit, which they previously couldn't.
- investors who are looking to protect and grow their wealth.
5/ Who can be a lender?
Anyone who holds $bluSGD can be a lender! To buy and sell $bluSGD, see the information below:
docs.bluejay.finance/user-guides/buying-and-selling-blu
Check out the diagram for the information a lender must look out for:
6/ Who can be a borrower?
Any business can create borrower pools by providing information and proposing the terms and conditions of their loan. However, there is no guarantee that lenders will fully supply funds to the borrower pool.
Success metrics are highlighted below:
7/ What are Loan Terms to look out for?
Some key terms include est. APR, payment frequency, and loan tenure.
All of these terms will be part of the Smart Contract. See the diagram if you are a visualizer than a reader:
8/ Type of Borrower Pools
Permissionless Pool - Earn protocol enables anyone to create a borrower pool.
Facilitated Pool - Loans in this pool are facilitated by Bluejay's BD Team to help with operational requirements during the loan term.
9/ Loan Lifecycle
So what goes on behind a loan?
TL;DR, if a minimum is reached, it means a borrower can draw down on the loan and the tenure will start according to the terms.
If minimum funding is not reached, all funds will be refunded to the lenders.
10/ Fees
Fees are only charged upon the successful funding of a loan pool.
What does success look like?
- Pool assets > min. funding required.
- Borrower drew down on loan before drew down period ended.
11/ Legalities and Risk Disclosure
For more information on legalities and risk disclosure, it is encouraged that you read the full information by yourself as the information is too crucial to breaking down into bite-sized pieces.
docs.bluejay.finance/bluejay-earn-core-concepts/legalities
CONCLUSION
As Bluejay Earn nears its launch, we are proud to be one of the changemakers in bringing real economic activities on-chain and giving accessibility to borrowers and lenders to easier financing & investment opportunities, all with the use of DeFi!