🔗Marketplace

Introduction to the Definder Marketplace

The Definder Marketplace is a decentralized platform designed to facilitate direct lending activities between peers. Projects that are accepted by the Decentralized Autonomous Organization ( DAO) are listed on this marketplace, where they become accessible to potential investors. Each listed project generates a unique smart contract containing specific lending terms, which are recorded on the blockchain. This ensures transparency, security, and immutability of the terms agreed upon.

Investors can participate by using USDT to invest directly into the projects listed on the platform. The process is straightforward and user-friendly, making it accessible to a wide range of participants. Once a project has accumulated sufficient investment funds, it can request a withdrawal. This withdrawal is not immediate but requires multisignature authentication, adding an additional layer of security and trust to the transaction.

Upon the successful withdrawal of funds, the repayment process begins. The project is obligated to make interest payments directly into the smart contract wallet. These payments are then automatically distributed proportionally to the investors' wallets, ensuring that returns are fairly and transparently allocated. At the end of the loan term, the full principal amount is repaid to the investors, completing the lending cycle.

The Definder platform charges a 4% fee on each transaction. This fee is the only commission applied, and the profits generated from it are reinvested into the system. These funds are used for development, rewarding participants, and token burning, which helps to manage the token supply and potentially increase its value.

How Smart Contracts Work

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically enforce and execute the terms of the contract when predefined conditions are met. In the context of the Definder Marketplace, smart contracts play a crucial role in the lending process.

1. Loan Creation:

When a project is listed on the Definder Marketplace, a smart contract is generated. This contract includes all the necessary terms of the loan, such as the interest rate, repayment schedule, and total loan amount. The smart contract ensures these terms are immutable and transparent, visible to all potential investors.

2. Investment:

Investors can contribute USDT directly to the smart contract associated with a project. Each investment is recorded on the blockchain, providing a transparent and immutable record of all transactions.

3. Fund Withdrawal:

Once the required investment amount is reached, the project can request a withdrawal. This process requires multisignature authentication, which involves multiple authorized signatures to approve the transaction. This security measure ensures that funds cannot be withdrawn without proper authorization.

4. Interest Payments:

After the funds are withdrawn, the smart contract starts a timer for interest payments. The project is responsible for depositing interest payments directly into the smart contract wallet. The smart contract then automatically distributes these payments to the investors' wallets based on their proportional investment.

5. Loan Repayment:

At the end of the loan term, the project must repay the full loan amount into the smart contract. The smart contract handles the distribution of the principal repayment to the investors, ensuring that each investor receives their share according to their initial contribution.

Benefits of Using Smart Contracts in Loans

Transparency: All terms and transactions are recorded on the blockchain, providing complete transparency.

Security: The use of blockchain and multisignature authentication ensures a high level of security for all transactions.

Efficiency: Smart contracts automate the enforcement and execution of loan terms, reducing the need for intermediaries and manual processing.

Immutability: Once a smart contract is deployed, its terms cannot be altered, ensuring that all parties adhere to the agreed-upon terms.

Conclusion

The Definder Marketplace leverages the power of smart contracts to provide a secure, transparent, and efficient platform for peer-to-peer lending. By automating the lending process and ensuring strict adherence to loan terms, smart contracts enable a robust and trustworthy environment for both investors and project owners.