🏊‍♂️Lending pools

A User-friendly hub where you can explore real estate lending strategies tailored to your risk appetite.

The lending pools in the Definder system function as targeted investment vehicles, enabling investors to engage in real estate lending under varying strategies and risk profiles. They offer a structured approach to real estate investment, backed by professional vetting, smart contract security, and a governance model that promotes investor participation and transparency.

1. Creation and Strategy Development:

• Each lending pool is created with a specific investment strategy, targeting different sectors of the real estate market (e.g., commercial, residential, hospitality).

• Strategies are formulated based on market analysis, risk assessment, and potential ROI, and they dictate the pool's investment focus, risk profile, and expected returns.

2. Investor Participation and Contribution:

• Investors contribute funds to a lending pool that aligns with their investment goals and risk appetite.

• Contributions can be made in DFIND or USDT, offering flexibility in asset allocation.

• Upon investing, funds are locked in the pool for the duration of the loan maturity period specified by the pool's strategy.

3. Risk Mitigation and Loan Security:

• Each pool incorporates risk mitigation measures, primarily through collateralization of real estate assets and rigorous project vetting.

• The Definder team, comprising auditors and real estate experts, assesses each project for risk and compliance before inclusion in a pool.

4. Interest Rate and Return Mechanism:

• Interest rates for each pool are pre-determined based on the underlying strategy and agreement with borrowers.

• The interest rate reflects the pool's risk-reward profile and is recorded in a smart contract associated with the pool.

5. Fund Allocation and Loan Disbursement:

• Funds in a lending pool are allocated to real estate projects that fit the pool's investment strategy.

• Disbursements to projects are controlled via multi-signature wallets, requiring approvals from designated signatories for fund release.

6. Loan Management and Repayment:

• Loans issued from the pool have predefined terms, including interest repayment schedules and loan duration.

• Borrowers make regular interest payments as per the terms, which are distributed to investors in the pool.

• At loan maturity, the principal amount is returned to the pool and subsequently to the investors.

7. Multi-Signature Wallets for Security:

• Each project funded by a lending pool has a dedicated multi-signature wallet.

• Withdrawals from these wallets require signatures from both lender and borrower representatives, ensuring mutual consent and transparency in fund utilization.

8. Governance and DAO Integration:

• Investment decisions in some pools may be subject to DAO voting, where investors vote on project funding.

• This mechanism ensures investor participation in decision-making and aligns investments with community preferences.

9. Return on Investment and Exit:

• Upon the completion of the loan term, investors receive their principal investment plus accrued interest.

• The return is based on the pool's performance and the interest generated from the funded projects.

10. Transparency and Reporting:

• Regular updates on project progress and pool performance are provided to investors.

• These updates maintain transparency and keep investors informed about their investments.