Loans.bird.money, otherwise known as Bird Loans, is a non-custodial digital asset lending and borrowing platform based on the Compound protocol with altered asset pools and the use of Bird+ to increase access to additional funds in excess of the current collateralized debt positions (CDP) offered by Compound Finance and AAVE.
The Collateralized Debt Position (CDP) allows a DeFi user to lock their crypto assets (currently only ETH) into the CDP vault and receive a loan against the deposited sum of 66 percent DAI (1 DAI = 1 USD). The user only needs to repay their borrowed debt in Dai in order to unlock and reclaim their locked crypto assets.
- Lock up 100ETH in the collateral vault
- Borrow up to 66ETH worth of Dai
- Repay borrowed Dai at any point in the future to unlock and reclaim collateral
The problem users are faced with in the current scenario is that 100 ETH is required to receive a loan worth 66 ETH in value. Bird.Money is looking to change that requirement.
We can increase access to funds for borrowers with market intelligence and payment analysis through Bird.Money analytics in a scheme called Bird+
Bird+ is the additional amount of tokens offered to borrowers without any additional collateral, which is based on their transaction history and rating from Bird.Money analytics.
Bird+ = Amount to borrow + Transaction History / Amount to lock up
Example of transaction history and amount of Bird tokens available to borrowers:
Repayment with Bird+
The Borrower would be required to pay back the amount of digital assets — the $BIRD tokens — with interest, at the stipulated time. Interest on the extra Bird+ tokens would be reduced to a minimum. Any users defaulting on a loan would be penalised with a lower Trust Score rating on the Bird.Money Analytics Platform, thereby reducing their access to additional funds in the future.