AMA Session with Rulin & Dima from BNPL Pay
Guest : Rulin — Finance Lead, Dima — Product Lead at BNPL Pay
Iris: Today, we’re honored to have Rulin — Finance Lead, Dima — Product Lead at BNPL Pay, in our community to give us a more intuitive introduction to their unique project.
Rulin & Dima, would you like to say hello and introduce yourselves?
Rulin: Hi, yep I am Rulin, part of the BNPL team helping with the finance and incentive models behind the protocol.
Dima: Sure, so I’ve been in crypto for a while, since the 2014 days. Have done all sorts of things, from mining to leading investment rounds to product design. The BNPL team approached me to help shape a product that intermingles between the DeFi and CeFi space, and as such I currently lead product as BNPL pay.
Token is trading on MEXC: https://www.mexc.am/exchange/BNPL_USDT
Questions about the project
Iris: What is BNPL Pay? Can you share with us more in detail?
Rulin: BNPL Pay is the first of its kind defi protocol to service the unsecured loans to institutional borrowers. It is a permissionless protocol, where anyone can set up a node, bridging the gap between defi and cefi. This unique infrastructure gives lenders in the defi space the ability to lend funds in a transparent and decentralized manner to cefi borrowers, as well as give institutional borrowers and fast and convenient way to access defi lenders to fund their operational needs.
Iris: That is quite something — connecting DeFi to CeFi
Iris: What triggers you to launch BNPL Pay? What are some of the real-world problems/ pain points that BNPL Pay aims to solve?
Rulin: One major real world problem our founders saw was the large hurdles and lack of liquidity for smaller institutional borrowers, especially in the Buy Now Pay Later space. Moreover, yields in the defi space seemed to be unsustainable, as they were driven more by liquidity mining of tokens, than real world demand for borrowing. This seemed like a perfect opportunity to connect these two parties, giving real world borrowers access to a larger source of liquidity, and allowing defi lenders a more sustainable source of yield.
Iris: Ah BNPL stands for Buy Now Pay Later. Super 🔥
Iris: What are some of the challenges that BNPL Pay currently faces? How do you aim to solve them?
Rulin: One major hurdle is the uncertainty of regulation in the crypto and defi space. We are working with a top tier legal firm in Singapore to help navigate the changing legal environment, and ensure our platform remains compliant with regulation.
Another major challenge is onboarding borrowers, as much education is needed with how to interact and use our protocol as well as defi in general for institutional borrowers. As such, we have strategically targeted these parties as our investors, as they will be potential borrowers or able to bring on potential borrowers.
Iris: Yeah regulation has been a challenge for most of the crypto world. Good luck with everything ❤️
Iris: Are there any exciting news or updates with regards to BNPL Pay that you would like to share with the users?
Dima: Yes, we have a lot of news coming in the next 1–1.5 months:
1. We have a new website being developed
2. Our smart contracts are complete and have been submitted to Hacken for Audit
3. Our front end is being developed at the moment and is making incredible progress, we hope to share some sneak peeks in the coming weeks
4. We have some exciting partnership announcements, but the most current one is with ThorGuards, more info will be coming later today — stay tuned
5. Our Sushi LP liquidity mining program has been live for a week or so, and we are seeing fantastic APY’s at the moment.
If you provide BNPL+ETH liquidity on sushiswap, and stake it on our webapp :
The current APY is very nice
Iris: Wow 482% 🔥🔥
Dima: We expect to have a working product by end of November :)
Iris: Can’t wait to see it!
Iris: If you were to summarize your project in ONE word, what would it be? Why?
In short, creating a new credit market for institutional borrowers, and allowing DeFi lenders to act as creditors to Tradfi institutions.
Q1. How do you deal with the security threats of your project? DO you have any AUDIT in recent times for trust?
What strengths does BNPL Pay have to compete with competitors?
We have submitted our code for review with Hacken, a full audit will take place prior to launch.
Furthemore, we are launching a bounty on ImmuneFi, so that whitehat hackers can compete to discover flaws in the code and get rewarded for it
We are the first platform that is trying to do the uncollateralised lending thing in crypto with a unique approach. Other platforms do exist, but no platform decentralises the ability for ANYONE or ANY entity to run a banking node and handle to lending of capital. Every competitor, centrally delegates this task and vets companies. in the true spirit of DeFi, we allow our incentive model and the decentralised ethos of the space, dictate the actions of participants on our platform
Q2. If a borrower does not repay a loan, the lender can take legal action. How can a banking node sue a borrower if there is no loan agreement that can be enforced in a court of law?What are the disadvantages for a borrower if he does not repay his loan?
Banking nodes will typically only lend to parties they are able to perform contract enforcement. We expect our node operators to have this facility to give lenders of their pool the confidence to lend with them. BNPL is set up in a way, that nodes must compete with one another to attract capital for lenders, and if a banking node is unable to chase defaulted loans, its unlikely they will attract capital.
Q3. Do you expect the majority of the borrowers to be businesses in the DeFi space, or as a “Bridge to the defi world” is this expected to be a way for Cefi Institutions to act as banking nodes and access Defi money for “meat space” loans?
We expect more borrowers from the CeFi world. The TAM for credit markets in Tradfi is in the many orders of magnitude higher than that of Defi at the moment, so we expect much more demand to come from this sector. We are looking to expand our borrower base as large as possible, and have our target set on much larger markets than the current defi sector.
Q4. Can you list 1–3 killer features of Your Project that makes it ahead of its competitors?What is the competitive advantage your platform has that you feel most confident about?
We have a robust series of rewards and punishments in place to govern user behaviour, instead of a strict set of rules. Each action will be rewarded with either yield, or penalised with slashing.
To give a direct example, to incentivise Banking Node operators to do their job diligently, we have introduced a bond mechanism. Before a user is able to run a node, they must commit 5mm BNPL tokens as a “bond”. What this does is acts as a guarantee against bad action. If the operator for example doesn’t do due diligence and loses users funds by writing a bad loan, a percentage of their bond is slashed, and handed to the lenders who lost out due to the incompetence of the Node Operator.
Q5. How can I buy this tokens? Is it available on any exchange?
Currently we are trading here: https://app.sushi.com/swap?inputCurrency=0x84d821f7fbdd595c4c4a50842913e6b1e07d7a53&outputCurrency=ETH
And here: https://www.mexc.am/exchange/BNPL_USDT
Q6. Almost 80% of investors have focused on the value of tokens in the short term instead of understanding the actual value of the project. Can you tell us about the motivation and benefits for investors to hold on to your tokens in the long run??
Participants who buy bnpl tokens have 3 roles they can fulfill:
1. Bond BNPL tokens to RUN a banking node (there is a minimum required for this)
2. Stake BNPL inside a banking node as gurantee a Banking Node or “vouch” for it. This allows stakers to share in revenue from interest paid by borrowers
3. Vote in the DAO (more information coming soon)
Q7. What’s your main focus right now, are you focused on the community or market/Exchange or the products?
My focus is 100% on building a solid product, and most importantly secure product. WE have a large team with dedicated marketing / finance / community people each doing their specific roles. But our key focus as a team is to deliver the product we described in our whitepaper here:
MEXC Global: https://www.mexc.com/