BankingNode Operators

Unlike established protocols within defi, uncollateralized borrowing presents an entirely new avenue of risk that is yet to be tackled within blockchain networks, namely, counterparty risk. Tapi Pay seeks to address this risk by delegating the tasks of credit checks, risk assessment, and other processes conducted by traditional credit facilities to our node operators. Under this structure, node operators lie at the heart of our protocol and connect lenders with borrowers. Banking Node Operators Any entity can create a Banking Node, become its operator and have full autonomy of the lending operation. They are required to lock up 2M Tapi tokens, creating a vested interest in the protocol, as well as demonstrating commitment to their responsibilities. This design creates a much more open and competitive environment for lending institutions to operate in, than the current TradeFi alternative. Competition and inclusion are the necessary ingredients of innovation, something that is much needed in the credit industry. Bank Node operators compete with one another for both capital from lenders and loan requests from borrowers. The Tapi protocol aims to empower borrowers with more options for their financing needs, as well as access to more competitive rates. Pool Initiation and Termination In order to set up a Banking Node and become a node operator, no formal application is required. Users simply need to lock 5,000,000 Tapi tokens into a bonding contract. These tokens are locked until the termination of their node. An operator can choose to terminate their node only when all outstanding loan contracts reach maturity, at which point