Glossary

The following definitions are used in the rest of the whitepaper/documentation to point out certain features pertaining to the PawnSpace protocol.

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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