Protocol Overview

1. Banking Nodes create and operate a pool of liquidity that is delegated to them from lenders. They decide how the capital is best utilized and are responsible for tasks such as assigning credit limits, interest rates, and other terms to prospective borrowers. Banking nodes broadcast all prior transactions and lending history that are summarised into easy-to-understand metrics, helping Lenders and Borrowers determine the appropriate node to interface with. To set up a Banking Node, an individual or entity must stake and lock 2M Tapi tokens. Node operators accrue 10% of the interest portion of payments made by borrowers of their pool and further staking rewards. Upon the Token Generation Event, anyone willing to bond 2M Tapi tokens will be able to set up their banking node and attract their portfolio of lenders and borrowers, thus creating a free market system that encourages competition.

2. Lenders are any protocol participant that chooses to delegate capital to a Banking Node. Within the protocol, lenders can see a transparent history recorded in the blockchain of every node operator, including stats such as total capital managed, interest accrued, average APY, total default loss, etc., as well as more detailed descriptions provided by operators on their lending procedures. Lenders will receive 70% of the interest payments made by borrowers (and principal repayments) and token emissions from our liquidity mining program. Token emissions are distributed proportionately to all lenders based on individual liquidity provided versus total liquidity on the platform.

3. Stakers are any protocol participants that hold Tapi tokens and wish to delegate them to a Banking Node. This functions as a soft vouch for the pool operator, in return for 20% of the interest income. Stakers receive rewards in Tapi tokens, where the interest accrued is automatically converted into Tapi. In the event a default occurs, they are also subject to the same penalty as the operator and the percentage slashing penalty will be equivalent to the size of the default as a percentage of the total pool capital.

4. Borrowers apply for loans from Banking Nodes. They can apply to multiple pools at no cost and are subject to the Banking Nodes' due diligence processes, such as KYC requirements and credit checks. To set up a Banking Node, an individual or entity must stake and lock 2M Tapi tokens. Node operators accrue 10% of the interest portion of payments made by borrowers of their pool and further staking rewards. Upon the Token Generation Event, anyone willing to bond 2M Tapi tokens can set up their banking node and attract their portfolio of lenders and borrowers, thus creating a free market system that encourages competition.