Third Party Lending

In addition to native lending on the usual overcollateralized borrow/lend platforms, UXD Protocol will also back UXD stablecoin in part by the loan portfolios of third party lenders, such as Maple Finance.

Maple Finance has three roles:

Liquidity Providers (LPs) deposit funds into a Liquidity Pool in order to fund loans and earn yield. In return, they receive an LP token representing their share of the pool.

Pool Delegates are responsible for managing each pool. They perform diligence and agree terms with Borrowers through smart contract technology. Pool Delegates are required to stake MPL-USDC 50-50 Balancer Pool Tokens in their Pool to cover defaults, aligning their incentives with Liquidity Providers.

Borrowers request capital from the platform by creating a Loan (which holds collateral and receives funding) and inputting requested loan terms. Once these terms are agreed with a Pool Delegate, Borrowers can withdraw the requested funds for a fixed term, at a fixed rate, and at a fixed collateralization level.

UXD Protocol, by acting as a Liquidity Provider, will contribute assets to be lent on the Maple platform.

However, Maple Finance is only one such example. UXD Protocol plans to use various platforms of this sort that connect third party capital providers (UXD Protocol) with credit managers that lend to various counterparties.