into crypto assets
- Generate income from lending
- Raise liquidity against crypto collateral
- Borrow crypto assets to go short
A repo is an agreement to sell assets and repurchase them on a specified future date ("maturity") at a pre-agreed price.
Economically repo is as a loan secured against collateral.
Repo markets are the oil that lubricates financial markets; more than $12 trillion repos outstanding in the US and Europe.
In a CryptoRepo transaction one party borrows digital tokens from another party and commits to return these assets with interest at a future date.
The Borrower provides crypto assets to the Lender as collateral, creating a secured digital transaction.
Collateral is custodied by a smart contract, that also acts as a clearing and settlement agent.
A deal is defined as an event when both counterparties are registered by the matching engine and settlement is triggered by the smart contract under following conditions:
The lender specifies:
The borrower specifies:
The matching engine has no access to private keys.
Intelligent system provides advisory on market based on market events - ceilings, floors and indicative rates for offer submission.
A set of web applications where participants interact with decentralized repo contracts.
The core of decentralized repo transaction. Security of assets is provided by Ethereum network. The smart contract acts as the settlement mechanism for deals that occurred through the public auction.
The rating system rewards and penalizes users proportionally to the deal’s volumes. A separate smart contract stores the rating data.
Close-out management helps exchange collateral into the original asset of the lender. It can be done either via a decentralized exchange (Etherdelta) or a trusted third-party service (eg Changelly)
System fee is paid in OXG tokens. Gas included.
Loan is transferred to borrower on collateral settlement.
The collateral is locked in the smart contract until the credit-event.
If the borrower fails to return borrowed tokens when the deal has expired, the deal is automatically considered as default. The lender will then be able to claim the collateral from the contract.
When the borrower successfully returns borrowed tokens with interest while the deal is still active (not expired), the deal is automatically considered as completed.
In case of a default the rating declines.
In case of a successfully closed loan the rating increases.
If the lender has specified this clause in the contract – automated realization.
Optional. If the lender has specified this clause in the contract the interest is paid from the collateral.
Interest is an agreed percentage of notional value of borrowed assets.
All transactions are secured and the lender will always receive the collateral in case of borrower’s default on payment.
Borrowed assets are returned to the lender via ERC20 contract interface.
The collateral is unblocked from the repo contract and is returned to the borrower.