BNPL Pay Latest Features
🟣 Collateralised Loans
BNPL Pay now supports the ability to apply for collateralised loans — partially, fully, or over collateralised depending on the circumstances. The two current tokens available for loan collateral are Wrapped ETH WETH and Wrapped BTC WBTC. If you would like to provide ETH as collateral you must first wrap it as WETH — we recommend using SushiSwap for ETH wrapping.
🟣 Requesting a Collateralised Loan
The option for collateral has been added to the loan creation page. You do not need to have the collateral tokens available in your wallet at the initial loan request stage, instead, the tokens are only required after the Banking Node has approved terms — at the point of deploying your loan request on-chain.
Upon completing the loan request form press the ‘Confirm’ button at the bottom of the screen to submit the off-chain request to the selected Banking Node for approval.
🟣 Deploying an Approved Loan Request On-Chain
Once the Banking Node has approved the terms of the off-chain loan request it is ready to be submitted on-chain. Approved loan requests show in the Borrow screen with status “Request Approved”. At this point, the collateral must be held in the Ethereum address connected to the BNPL Pay app. Clicking ‘Submit’ will initiate two transactions. The first transaction will approve the selected collateral to be used by the Banking Node contract. The second transaction will submit the loan request on-chain with the agreed collateral and will be awaiting issuance from the Banking Node.
🟣 Canceling the Loan Request and Withdrawing Collateral
If for any reason you wish to cancel the loan request and withdraw your collateral, you can do so from the Borrow screen as long as the loan has not yet been issued — e.g. Awaiting Issuance. Once the loan has been issued the only way to withdraw the collateral is by repaying the loan in its entirety.
Click ‘Withdraw Collateral’ and confirm the transaction to return the required collateral to your wallet, which will also cancel the loan request. Once collateral has been withdrawn it is not possible to add the collateral to the loan request again, instead, a new loan request must be created.
🟣 Repaying Collateralised Loans
Upon being issued by the Banking Node the loan it is to be repaid monthly as required until the term has completed. It is possible to repay a loan early in its entirety in order to unlock the collateral early, if required. The Repay function will make the standard monthly repayment whereas Repay Early will repay the remaining loan amount in full, thus also unlocking the collateral.
After settling the loan in full the status will show as ‘Loan Completed’ and you will be able to withdraw the collateral using the ‘Withdraw Collateral’ button.
🟣 Collateralised Loan Default — Slashing
Should a borrower fail to make a loan repayment within the grace period as displayed on the Banking Node details page, the loan will be considered defaulted and will be subject to a potential Slashing event.
The slashing function is an Ethereum transaction that can be called by anyone — even if they are not the Banking Node, Borrower, and even if they haven’t deposited stables or staked BNPL within the node.
🟣 Fully/Over Collateralised Loan Slashing
In the event of slashing a collateralised loan, 100% of the collateral is market sold for the Banking Node’s operational stablecoin, regardless of whether it is under, fully or over collateralised. When the stablecoin value of the remaining collateral is higher than the principal remaining, the excess stablecoin will be automatically returned to the borrower.
🟣 Under Collateralised Loan Slashing
When the stablecoin value of the remaining collateral is lower than the principle remaining, staked BNPL will also be slashed. The amount of BNPL to be slashed is a percentage of the staking pool equal to the stablecoin default value as a percentage of the Banking Node’s total liquidity pool.
For example, if after selling the collateral the loan default is 1% of the Banking Node’s USDC liquidity pool, then 1% of the staked BNPL will be sold and the stablecoins deposited back into the pool.
🟣 Banking Node Information
To assist with the communication process between Banking Node and Borrower we have added two additional fields to the Banking Node details — Email and Telegram. Should a Borrower have any questions they can be sent via the new communication channels.
🟣 Archiving Loan Requests
To assist with Loan Request spam, Banking Nodes now have the ability to Archive individual loan requests that have been rejected. The app will also set rejected loan requests to archived after 48 hours. Archived Loan Requests can be viewed once again by clicking ‘Show Archived’.
🟣 Tooltips
A number of tooltips have been implemented throughout the app to provide more information on statistics and features, for example, further information on the calculations behind certain numbers displayed on screen.
🟣 Inactive/Under Bonded Banking Nodes — Hiding/Unhiding
Occasionally Banking Nodes will either be decommissioned by the owner by unstaking their 2m BNPL or will be subject to a Slashing event that reduces their total bonded BNPL to under 1.5m. When a Banking Node has less than 1.5m it can no longer issue new loans or accept incoming stablecoin deposits or BNPL staking. In this scenario only the Banking Node owner can stake BNPL to 2m BNPL, should they wish to return to operations.
Even though the Banking Node is considered inactive, all existing active loans that have been issued by the Banking Node can be repaid by borrowers as normal. The BNPL staked can be withdrawn as required and the stablecoins can be withdrawn, as long as there is enough stablecoin liquidity returned to the pool.
A new Show/Hide Inactive Banking Nodes feature has been implemented to hide these inactive nodes from view by default. Simply click ‘Show Inactive/Under Bonded’ to show them.
🟣 Repayment Warnings For Non Borrowers
Slashing events are obviously not positive for a Banking Node’s reputation and may also have negative implications for stablecoin depositors and BNPL stakers alike. In order to reduce these occurrences, the BNPL Pay Protocol allows anyone to make a loan repayment in order to avoid a Slashing event — even if they are not the Borrower. We have introduced a warning for users that may accidentally try to repay a loan that does not belong to them as a Borrower.
🟣 Unstake BNPL Cooldown Warning
Staking BNPL can be done instantly but if you wish to unstake BNPL there is a 7-day cooldown whereby the BNPL remains locked and cannot be withdrawn. A notification has been added upon staking BNPL to make the cooldown terms clear.
🟣 Stablecoin and BNPL Staking APRs
The Stablecoin APRs have been made more clear with a tooltip that displays the split between APR % in native Banking Node Stablecoin and the BNPL incentives APR. For BNPL Staking, the APR was only showing after a loan had received its first interest payment but is now projected based on the loan schedule. Please note that the entire ecosystem relies on loans being issued and also repaid, so some APRs may seem lower than expected due to the limited amount of loan data available to project or estimate an APR.
What is BNPL Pay
BNPL Pay is a decentralized blockchain lending protocol that is putting credit in the hands of those who need it the most: people without capital. The BNPL Pay Protocol addresses the issues that are presented by uncollateralized borrowing, with a decentralized network of banking nodes. With the BNPL Pay Protocol, anyone can become a bank and anyone can apply for a loan.
BNPL is the governance token at the heart of the protocol.
🌍 Website
📩 Newsletter
🦎 Coingecko
🔺 Trader Joe
💱 MEXC
🍣 SushiSwap
If you found this article informative, please consider clapping 👏 below.
To learn more about BNPL Pay and stay updated on all our developments, visit our Website and join us on our Twitter, Reddit, Telegram Chat & Announcements
