📑Borrowers Onboarding Process
To maintain trust and security, Pillarfi employs a rigorous onboarding process for institutional borrowers:
Due Diligence:
KYC (Know Your Customer): Verification of the institution’s identity and legal status.
AML (Anti-Money Laundering): Ensuring compliance with regulatory standards to prevent illegal activities.
Credit Evaluation: Assessing financial health, creditworthiness, and repayment capacity.
Approval:
Borrowers meeting the platform’s standards are approved and granted access to set up customized liquidity pools.
Single-Borrower Liquidity Pools:
Borrowers create pools dedicated solely to their institution. Only the presiding institution can borrow from these pools, while anyone can provide liquidity.
This model allows borrowers to obtain unsecured loans, significantly reducing over-collateralization burdens and eliminating liquidation risks.
Dynamic Borrowing Terms:
Interest rates adjust automatically based on pool utilization, incentivizing balanced liquidity usage.
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