Investors lend stablecoins to borrowers. Investors look across various opportunities available and may participate in any loan pool after evaluating the information

Who can be a lender?

Bluejay Earn enables anyone holding stablecoins to become an investor ("lender"). Whether you're living in a developed market with investment opportunities still outside of your reach, in an emerging market with limited selection of financial products or in a country with restrictive capital controls, Bluejay Earn provides a way for you to diversify your portfolio in a sustainable way.

How does it work?

In order to participate in any of the opportunities, investors can get access to stablecoins (For example, refer to this article - buying and selling bluSGD). Once the stablecoin is in their wallets, they may select any of the opportunities available for them to invest via the dApp.

Once the investor has deposited funds into a loan pool, the investor will receive a loan pool token ("LP Token") which represents their share of the loan pool. When the loan pool is fully subscribed and the borrower has started repayments, the LP token holders will receive repayments in proportion to their share of the pool.

What kind of information should a lender look out for?

Prior to depositing funds, investors are strongly recommended to perform due diligence on the borrower and its respective opportunity. Some of the information that lenders should look at include:

  1. Identity (KYC/KYB Information)

  2. Legal Structure and Flow of Funds

  3. Loan Agreement

  4. Availability of Collateral and/or Guarantors

  5. Past Performance and Forecast

  6. Use of Proceeds

  7. Procedures of Default

Some of this information will be available to the investors via Dataroom; containing information that borrowers provide. It is important to note that the protocol is not liable to ensure accuracy and completeness of information provided by the borrower. As investors, you are responsible to perform as much due diligence as possible before lending out your funds.

For further information about Legalities, please refer to the Legalities section of this documentation.

Last updated