Pillar Finance Docs
  • PILLAR FINANCE
    • Overview
    • 👍Challenges
    • Why PillarFi
  • WORK AND MECHANISM
    • 📑Borrowers Onboarding Process
    • Lenders
    • Built-In Protections for Lenders
    • Mechanism
    • Autonomous Yield Agent (AYA)
    • Autonomous Lending Agent (ALA)
  • Loans
    • Collateralized Loans
      • Features and Risks
      • Solution by PillarFi
    • Uncollateralized Loans
      • Features and Risks
      • Solution by PillarFi
  • REAL WORLD ASSETS
  • PILLAR TOKEN
  • USDY
  • KEY ADVANTAGES
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  1. WORK AND MECHANISM

Borrowers Onboarding Process

To maintain trust and security, Pillarfi employs a rigorous onboarding process for institutional borrowers:

  1. 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.

  2. Approval:

    • Borrowers meeting the platform’s standards are approved and granted access to set up customized liquidity pools.

  3. 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.

  4. Dynamic Borrowing Terms:

    • Interest rates adjust automatically based on pool utilization, incentivizing balanced liquidity usage.

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Last updated 7 days ago

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