December 16: BNPL Pay, DeFi’s emergent uncollateralized credit protocol, successfully completed the development work of its Banking Node platform earlier this month. Current emphasis has shifted to security and safety, to assure this novel platform changes DeFi’s credit market while offering utmost security to user assets.
The vastly successful DeFi industry of today is a product of decentralized lending protocols that not only made capital accessible across the globe but also created fool-proof investment opportunities for users. But, in what could be a catch-22 situation, these very protocols also hinder capital accessibility. This is because most protocols facilitate over-collateralized loans and are out of reach of users who have no capital to begin with. The only way to circumvent this problem is through uncollateralized loans.
While BNPL Pay is a clear leader in uncollateralized lending, AAVE and other collateralized lending protocols are also working on Trust Systems for uncollateralized lending. BNPL Pay aims to effectively redistribute DeFi’s capital across the global financial system to make capital accessible to those participating in the decentralized ecosystem as well as the much larger traditional credit markets. It uses a network of banking nodes that act as a bridge between lenders and borrowers. The best part is that this bridge can also be accessed by traditional finance lenders, becoming an on-ramp for their entry into DeFi.
With BNPL Pay being open to such a wide range of users across the globe, the obvious questions of protocol security and asset safety surface. DeFi protocols have become a valuable target for hackers these days, contributing to over 76% of all hacks globally (source:Financialit.net), which has led DeFi protocols to lose an estimated $10.5 billion.(source:Bitcoinke.io) Keeping this in mind, BNPL Pay is taking additional precautions by pushing the full launch into January to have enough time for adequate testing and security checks.
As of today, BNPL Pay’s smart contracts have been successfully completed and audited by the renowned cyber security firm Hacken. To further negate any chances of bugs, the protocol has partnered with ImmuneFi to conduct a bug bounty program. Along with all this, full security and performance testing for the protocol is currently underway and is expected to continue till January 2022. BNPL Pay believes that these security measures could provide the protocol with a proper shield from DeFi hacks and thefts. This ensures that user assets are safe, and it’s crucial for borrowers to be able to trust a decentralized protocol.
With such a unique vision and a robust architecture to support it, BNPL Pay managed to garner substantial attention from the market with TradeFi and DeFi experts like QI Capital, 0x Ventures, RuneBase, Clee Capital, and The Crypto Dog jumping onboard as backers. BNPL Pay’s token ($BNPL) has also been keeping up the performance, following its listing on SushiSwap and MEXC Global. For lenders in DeFi, BNPL Pay offers highly sustainable yields when compared to other DeFi platforms focused only on collateralized, on-chain borrowers.
To make its process compliant with regulations, BNPL Pay is integrating the optional ability for bank node operators to fully KYC lenders within a given bank node. The integration is a part of the protocol’s focus on enabling integration with traditional corporate borrowers.
About BNPL Pay
BNPL (Buy Now, Pay Later) is a decentralized lending protocol that puts credit in the hands of those who need it the most: users without capital. We tackle the problems presented by uncollateralized borrowing through a unique design in which a decentralized network of banking nodes services the needs of the industry. With this protocol, anyone can become a lender, and anyone can apply for a loan.
Website: https://bnplpay.io
Contact: marketing@bnplpay.io
