Glossary
The following definitions are used in the rest of the whitepaper/documentation to point out certain features pertaining to the PawnSpace protocol.
PawnSpace Related
Term | Description |
Borrower | Any user/wallet address on the protocol that wants to borrow funds by collateralizing their NFT. |
Lender | Any user/wallet address on the protocol that is willing to accept the NFT collateral and loan conditions and lends funds to the borrower. |
Loan Conditions | Parameters used to specify the conditions of the loan. This includes "Loan Amount", "Duration", "Interest Rate". |
Order | The represenation of an NFT collateraL with the Borrower's preferred loan conditions |
Create Order | The act of collateralizing an NFT on the protocol by the Borrower. |
Withdraw Order | The act of withdrawing an NFT from collateral by the Borrower if the loan is not initiated yet. |
Offer | The representation of Loan Conditions set by the Lender as a counter to the Borrower's Order. The loan is only initiated if the Offer is accepted by the Borrower. |
Create Offer | The act of counter-offering/proposing Loan Conditions by a Lender for a given Order. |
Accept Offer | The act of accepting an Offer from a Lender by a Borrower to initiate a Loan. |
Instant Loan | The approval by a Lender to accept the Borrower's preferred Loan Conditions and instantly start a Loan (without Borrower approval). |
Credit Token (CT) | The ERC721 (NFT) Token generated upon initiation of a Loan. It is generated when an Offer is approved by the Borrower or when a Lender initiates an Instant Loan. The Credit Token will be assigned to the Lender upon generation. It represents the obligation to receive repayment of the loan (aka ). |
Debt Token (DT) | The ERC721 (NFT) Token generated upon initiation of a Loan. It is generated when an Offer is approved by the Borrower or when a Lender initiates an Instant Loan. The Debt Token will be assigned to the Borrower upon generation. It represents the obligation to repay the loan (aka Debt). |
Credit Derivatives (CDs) | Derivative tools & products built on top of the protocol using the Credit Token |
Debt Derivatives (DDs) | Derivative tools & products built on top of the protocol using the Debt Token |
Other Concepts
Term | Description |
NFT (ERC721) | Non-Fungible Token which represents digitial assets on the blockchain. Follows the ERC721 standard in EVM-compatible chains |
ERC20 | A token standard on EVM-compatible chains for representing fungible tokens. |
The definitions of these terms are in draft, and may change as the protocol evolves.
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