Hello everyone,
We would like to tell you about our project BuddyDAO and a few key points of the project to help you get more involved and learn about the project in detail.
What is BuddyDAO?
BuddyDAO is a decentralized platform that offers DeFi lending and borrowing services. The primary goal of the platform is to provide an easier process of getting a loan compared to getting it from a bank. The most significant difference and advantage of BuddyDAO are that as a borrower zero collateral is needed to take out a loan.
How is it possible to get a loan but you don’t have to contribute anything?
It’s possible with BuddyDAO!
The platform works on an innovative concept. It leverages off-chain relationships and makes the loan procedure easier for everyone. The borrowers need to bring along guarantors who know them closely and can assure the platform about their credit worthiness.
In case, the borrower can’t pay back the loan, the guarantor will be responsible to pay the remainder on their behalf. This is how it has always worked as a co-signers in the TradFi world. BuddyDAO is now bringing cosigners to DeFi to create more loan assistance opportunities for everyone who needs it.
Why is BuddyDAO Important to the World of DeFi?
These days, isn’t it pretty hard to get a loan for your startup from a real bank? There are several reasons that make the process critical –
- Banks don’t think your startup is worth it.
- Banks look for collateral.
- They require your creditworthiness to pay back the loan.
At BuddyDAO, it’s a little different. You will not be required to pay collateral against loans. Moreover, the chances of getting loans for individuals, start-up owners, and small business owners are higher.
All this is done to show the world the importance of cryptocurrencies, DeFi, and the entire ecosystem of crypto space. Also, to make DeFi lending safer and easier!
How Does BuddyDAO Work?
Now, let’s talk about exactly how BuddyDAO works. We will try to explain in easy terms so that everyone from crypto experts to newbies can understand the process.
At BuddyDAO, the whole loan process consists of several stages. Prior to understanding that, we’ll discuss the key elements of these stages including the people and their roles within BuddyDAO’s platform.
1. Borrowers - They are the people who require loans.
2. Investors - They lend their money to the borrower as first-loss capital.
3. Guarantors (DeFi Cosigners)- They come along with the borrowers to assure the community of their credit worthiness.
And now the layout to determine how all of this is implemented within the protocol.
- Borrowers bring the guarantors along.
- Guarantors put their crypto assets in the pool and get a credit line.
- They share this credit line with borrowers.
- Borrowers share the credit line of stablecoins to the platform and get loans.
- On the other hand, the lenders lend their stablecoins and get pNote tokens in return.
This article was simply skimming the surface of BuddyDAO, but if you want to get a more in-depth understanding of the project, check out their whitepaper here.
Conclusion
The project is aimed at shifting TradFi cosigners to become DeFi Buddies. BuddyDAO’s goal is to revolutionize the DeFi lending market with a bang. Well, and of course, BuddyDAO has investors and partners in the project who’re serious about taking this project to the next level.
Are you ready to witness a new revolution in the industry? Stay tuned with us!
Website | TG Chat | TG ANN | Twitter | Discord | Reddit | Medium
