Introduction

Tapi Pay intends to disrupt the global credit markets by creating a unique uncollateralized lending protocol. The protocol will allow users to borrow funds through its system of distributed P2P lenders run natively on the Ethereum blockchain.

With the advent of blockchain technology, the credit markets have already undergone massive disruption. Currently, within the decentralized finance (Defi) and BSC ecosystems, the collateralized lending space has exploded, with relatively new protocols such as AAVE reaching ten figures in liquidity and borrowing. However, current protocols only support collateralized loans, limiting their users to only those with sufficient collateral.

On the other hand, the uncollateralized lending sector has yet to be explored and we believe this multi-trillion-dollar industry is ripe for disruption. For example, upcoming Buy Now Pay Later companies currently pay anywhere from 9% to 15% interest rates to traditional lenders, despite nominal default rates. By bridging these industries with the defi space, many synergies could be unlocked, allowing both defi yields to become more sustainable, and traditional finance (tradfi) credit to become more abundant, however, due to the complexities imposed by the credit and counterparty risk inherent within this. We believe the highest demand for credit comes from those who cannot meet the requirements to take on collateralized loans. To that end, we have created the Tapi Pay, an uncollateralized lending platform that services such a need. We tackle the counterparty risk associated with uncollateralized borrowing through a distributed network of Banking Nodes.

Our system delegates the tasks of credit checks, risk assessment, and other due diligence requirements to pool operators, and creates a set of incentive structures that reward effective operators and punish ineffective ones.

Banking Nodes Manage pools of liquidity and have the autonomy to delegate these funds to potential borrowers in the parameters they see fit, while lenders can choose an operator that suits their risk-reward preferences to conduct interest-bearing activities based on fully transparent data.

Borrowers can apply for credit from any or all Bank Nodes and, if approved, are issued loans on fully customizable and agreed-upon terms.