MortgageFi is a groundbreaking undercollateralized protocol that reimagines lending and borrowing for the digital age. By combining the familiar concept of mortgages with innovative on-chain economics, MortgageFi offers unparalleled opportunities for borrowers, lenders, and crypto projects alike. This white paper outlines the key features and benefits of MortgageFi, demonstrating its potential to reshape the landscape of digital asset finance.
The digital asset space has seen explosive growth, yet it lacks accessible, long-term financing options. MortgageFi bridges this gap by offering a unique lending and borrowing platform that caters to both crypto enthusiasts and newcomers to the space.
Under-collateralized loans with as little as 2% deposit
Loan terms ranging from 1 to 30 years
Fixed-price borrowing to hedge against future price increases
USD-denominated repayments for stability
Any ERC20 token eligible as a borrowable asset
Secure a stack of favorite tokens at today's prices
Ideal for regular wage earners looking to build long-term crypto holdings
Repayments become relatively easier over time due to wage increases and inflation
Optional strategy for borrowers to exit loans early
1% early repayment fee
Potential for profits if asset prices increase significantly
Earn up to 30% APY from loan repayment fees
Additional yield boosts from early repayment fees
Automatic yield accrual through rebasing mechanism
Priority redemptions for liquidity providers
Create long-term token lockups (up to 30 years)
Enhance token utility and demand
Strengthen community engagement
Choose an ERC20 token you want to acquire.
Deposit a small percentage (as low as 2%) of the total value you wish to borrow.
Receive the full amount of tokens you've borrowed, released to you when the loan term ends.
Make fixed USD-value payments over your chosen loan term (up to 30 years).
Deposit stablecoins into a MortgageFi vault.
Receive vault tokens that automatically increase in value as borrowers make repayments.
Earn additional yields from early repayment fees when borrowers exit loans early.
Withdraw your original deposit plus earned interest at any time.
Partner with MortgageFi to create a dedicated vault for your token.
Your community can borrow your token, creating long-term demand.
As borrowers repay loans, a portion of your tokens gets locked up, potentially for decades.
Borrower repayments in USD stablecoins go to the earning vault.
If a borrower defaults, their collateral and previous payments cover the loss.
The system automatically adjusts interest rates based on demand to maintain equilibrium.
Access under-collateralized loans without credit checks
Protect against future price volatility
Build long-term crypto holdings with manageable payments
Flexibility to choose between long-term holding and short-term strategies
Earn high yields with reduced risk compared to traditional liquidity pools
Benefit from both steady income and potential yield boosts
Passive income without manual claims
Diversification across different asset vaults
Create a "token sink" to manage circulating supply
Enhance community loyalty and engagement
Integrate MortgageFi vaults into tokenomics and governance strategies
Lower barrier to entry for mainstream users
Promote long-term holding and reduced market volatility
Create new use cases for digital assets as "digital homes"
Foster innovation in on-chain lending and borrowing models
Smart contract architecture ensuring security and efficiency
No oracle dependency, minimizing external risks
No systemic risks outside of those intrinsic to ERC20 tokens
Rebasing mechanism for automatic yield distribution
NFT representation of loans for transferability
Compatible with all EVM chains, with low technical barriers to entry
Automatic handling of defaults to protect the protocol
Overcollateralization of lending pools
Regular audits and security measures
Immediate launch on Base and Ethereum chains
Expansion to additional EVM-compatible chains
Implementation of a points reward system for loan referrers and liquidity providers
‘Short’ version of MortgageFi to be released to take advantage of bear market
Integrated support for undercollateralized NFT and tokenized RWA purchases
No oracle dependency, enhancing security and reducing external risks
Compatibility with any ERC20 token as a borrowable asset
Low technical barriers for integration with any EVM-compatible chain
No native MortgageFi token, focusing on utility and adoption rather than tokenomics
MortgageFi represents a paradigm shift in digital asset finance. By offering innovative lending solutions, high-yield opportunities, and strategic advantages for crypto projects, MortgageFi is positioned to become a cornerstone of the onchain economy. With its unique features, broad compatibility, and focus on security and accessibility, MortgageFi is set to revolutionize how we interact with digital assets in the long term.