Brand DeFi Protocol

Overview

The Brand DeFi Protocol enables a new form of lending collateralized by brand credits. By allowing brands to borrow against brand credits and share data with lenders, our DeFi protocol helps brands borrow at a lower cost of capital compared to the uncollateralized loans offer by payment providers and others.

Lending Pool Creation

Lending pools created with the DeFi protocol are highly customizable. Pool creators can set repayment, interest, and liquidation terms, and various pools can compete for lenders' capital. Because the Brand Protocol allows brands to easily tokenize brand credits and bring real world payments data onchain, we're uniquely positioned to enable lending pools that take advantage of these new primitives.

Use Cases

The cash borrowed from this facility can be used by brands and the service providers authorized to act on their behalf. For example, Hang Corp will use this facility to give free loyalty program trials to brands, backed by those brands' tokenized credits. When programs hit a target ROI, Hang will be repaid by the brand and will settle the loan. If the program does not hit the target ROI, Hang will have to purchase ETH to repay the loan, or purchase brand credits to reimburse the brand in the event of a liquidation.

Example flow: