Introducing Vendor Finance

Vendor Finance
2 min readMar 14, 2022

Lending and Borrowing Made Simple

What is Vendor Finance?

Vendor Finance is a unique lending & borrowing solution for DAOs and individuals with a simplistic user interface. The protocol will enable any DAO or individual to turn their treasury or wallet into a lending and borrowing platform on their own terms. Vendor Finance is especially useful as it can help unlock a treasuries underlying value to directly benefit its own token holders!

Project Mission and Impact

Vendor Finance will allow protocols and individuals, as lenders, to earn revenue on their idle treasury and wallet assets. Lenders set their own loan terms by choosing their desired interest rate, a mint ratio (think LTV), the collateral they accept, the token they loan, and repayment due date. This provides for a predictable revenue source geared towards the lenders own risk profile.

Borrowers will be able to borrow stress free as there are NO liquidations, interest rates are fixed, and there will be an option to make your loan perpetual via a unique rollover functionality at the lenders discretion. As a borrower you know exactly how much interest you owe and when it is due. Since interest rates are fixed, a borrower is not exposed to fluctuating rates. Again, since there are NO liquidations, you can sleep easy knowing you will never lose your collateral!

An example of the user interface

What are some problems Vendor Finance solves?

  • Allows for easier treasury diversification
  • Helps mitigate cascading liquidation events
  • Creates token utility for native token holders
  • Built in buyback mechanism via borrower defaults
  • Predictable income for lenders

The Team

You can read more about how the protocol will work in our documentation which you can find here: Docs. Please feel free to follow us on Twitter and join our Discord for any question and to receive more updates in the near future!

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