BNPL Pay, a Decentralized Lending Protocol Are Launching Their IDO on Thorstarter Launchpad

BNPL Pay, which recognizes the opportunities provided by the emergence of pay over time services, stated that they will carry out an initial IDO through the Thorstarter Launchpad. The sale will begin on September 14, 2021.  The BNPL Pay team further revealed that there will be “a total of 5,000,000 BNPL Tokens,” with each token being sold for $0.04. This is the same price that the tokens had been sold for during previous private sale rounds. 

BNPL Pay, a decentralized lending protocol that will specialize in offering credit solutions to consumers who may not have access to capital, reveals that it will be trying to solve problems stemming from uncollateralized borrowing through a “decentralized network of banking nodes.” By leveraging this protocol, anyone can operate their own bank. Anyone may also turn in an application for a fast loan, the BNPL Pay team writes in a blog post.

There won’t be any vesting on these tokens, but they will only be claimable following “the conclusion of our Balancer LBP,” which will take place after “the conclusion of the Thorstarter sale.” The BNPL Pay team also mentioned that XRUNE will be required to acquire BNPL Pay tokens via the IDO launchpad. These tokens will be distributed via the overflow method, where subscription is given at a pro-rata rate based on the total XRUNE committed by the sales participants. Unspent tokens shall get returned, the announcement noted.

During the IDO, users can choose to commit as many XRUNE tokens as they wish, and the final allocation will be based on their percentage of the total XRUNE that was committed. There will be “a 24-hour window” to commit to this sale, but there’s no special advantage given “based on time of commitment.”

BNPL Pay is a decentralized lending protocol that enables financial inclusion. During these past few years, the DeFi-focused collateralized lending sector has grown exponentially, and decentralized crypto protocols like AAVE and Compound have become multi-billion dollar platforms, seemingly overnight. 

But the BNPL Pay team claims that these protocols have not effectively served clients who do not have adequate capital. While the team acknowledges their considerable value add, they feel that the best  “opportunity” may be found in the credit sector. This is “something most protocols have missed,” the BNPL Pay team explains.

While there have been attempts to serve this group of users, the BNPL Pay team says that these protocols have depended a bit too much on the creditworthiness or the “reputation of borrowers — something only the high capitalized players in the space have.” This may be the reason why they’ve not been serving consumers that need access to capital the most.

The BNPL Protocol leverages “a decentralized network of centralized banking nodes” to offer the “maximum number of loans.” The team further noted that the older credit facilities place huge barriers to entry, and their inflexible regulations have led to “minimal competition” and “minimal innovation.” The average interest rate on credit cards can be around 20%, even though we’re living in a “near-zero federal funds rate era.”

The BNPL protocol aims to let anyone run their own banking nodes, and these nodes “compete for capital from lenders and for the loan fulfillment of borrowers.” This system may help achieve “maximum utility” for borrowers and lenders, according to the BNPL Pay team.