Fixed Term Loans

While existing DeFi loans are mainly used by speculators over short periods, UDX will enable term loans to a wide range of reputable borrowers. Loans will range from 1-5 years, making them more attractive for builders in search of steady capital and investors looking to diversify their risk/return profiles.

The loans offered by UDX will be customizable in order to provide optimal terms for lenders and borrowers. Interest payments can be made in the form of the principal asset or the protocol token, meaning a borrower can post protocol tokens as collateral to borrow stablecoins and interest payments can be made in the form of the proof of stake rewards from the blockchain being secured.

Credit Analysis

UDX will contract experts from a Guardian Guild to analyze borrower creditworthiness. Guardians will be ranked on the quality of their loans and their ability to execute on lending agreements, meaning Guardians will lean on the side of caution.