Frequently Asked Questions
- Partner section
- $FACTR token and Tokenomics
- Insurance, validation and compliance
What is Defactor?
Also, through the Defactor ecosystem, we will spawn new business models and new financial products and services that are Defi based. Defactor will help cement Defi as a true competitor to traditional finance.
What Problem does Defactor solve?
Why are you called Defactor?
How to apply?
How does Defactor work?
First, the asset originator will be required to upload their asset information into the Defactor platform. Depending on the asset class, different data will be supplied via the suite of APIs made available or through the Funding Portal which will allow low volume RWAOs with limited tech capabilities to enter key information required for funding for each asset class.
Once the asset’s information has been accepted, a comprehensive risk assessment will be performed, and each asset assigned a credit risk score. This score is a key input into the collateral manager, which will determine the funding level available against that asset.
For each pool, a set of limits on risk will be defined to ensure that it is not exceeding a certain % threshold to minimise risk. An example criterion is that a pool must not contain more than a given % of assets owned by a specific debtor. The Funding Manager will ensure compliance and The Funding Hub will keep track of all assets that are funded; the value of funding; when funding occurred when repayment is due; what has been repaid and when.
The funding hub will also provide the fiat to crypto on/off-ramp and make sure all transactional movements across the Defactor platform are logged.
In addition, they will reconcile payments and create alerts for overdue payments which will trigger the Liquidator if a delinquency or default rate occurs. The Liquidator will connect to the Collateral Manager to ensure any collateral is secured from the RWAO for the investors.
On the flip side of this equation are the Liquidity Providers (investors) who provide the funds for RWAOs to use and get paid an APY % return which is variable on the amount of time their capital is locked in staking.
Validated RWAOs will be required to take part in an investor showcase as part of the funding process. RWAOs will be asked to create promotional material which explains their business, team, funding requirements and how that funding will be used. This showcase provides a chance for the community to interact with the RWAO in order to bring transparency to investors.
What is Springpad?
It will also serve as a “sandbox” to test new asset classes such as NFTs. Currently , NFTs are going through a rapid adoption phase. The development of new digital economies will provide opportunities for funding to holders of these new asset classes. Now, holders are looking for alternatives to obtain liquidity without the need to sell their assets. This is something that Defactor has recognized as an opportunity.
We believe the Springpad is going to bring trust and belief to our community. The success of the Springpad is going to give people faith in this new era of lending, as there will be real-life case studies showing that our vision is not only possible, but it is optimal for businesses that cannot access lending services through traditional finance.
Who can apply?
Springpad allows businesses to dip their toes into defi funding and if successful and want more, they will progress onto the usual AO route and larger sums of liquidity can be provided.
What is Centrifuge?
What is the utility of the $FACTR token?
The $FACTR token is a universal requirement among both the RWAOs and the Liquidity providers. RWAOs must pay a fee of $FACTR for platform access as well as a proportion of the funds that they receive to get access to the platform will be paid through $FACTR and locked in during their funding term. For Liquidity providers, $FACTR will be what is used to stake as well as participate in the governance of Defactor which allows token holders to signal and support the operations of the ecosystem and guide decisions. An example of how token holders will be able to get involved is when there is a new asset class, token holders can aid in the decision to onboard the asset or not.
How do I buy $FACTR tokens?
There are many different types of wallets, but most fall into two main categories: hot wallets and cold wallets. The easiest to use and access online, is known as a hot wallet. There are safer hardware wallets, such as Ledger and Trezor which are cold wallets, but they are more difficult to use and can be costly.
Setting Up A Hot Wallet
1). Download MetaMask or other hot wallet providers on the Apple App Store or Google Play or get the browser extension on Google Chrome.
2). Next, you will have to create a password that is stored locally in your browser. This means that if someone has access to your laptop/phone they will need the password to access the MetaMask account. If you import your wallet to another device, using the seed phrase, this password will not be attached to it. It is still important to choose a strong password and store it in a safe place.
3). The next step is to buy BNB on a CEX and withdraw it from your MetaMask wallet. Usually, you can find a ‘Withdraw’ button in the overview of your account. On the withdrawal request page you must select the ‘Binance Smart Chain’ (BSC) network. The exchange might ask for the token type too, which is BEP-20. It is extremely important that you always select the correct network because selecting the incorrect network can result in a loss of all your funds.
4) Go to the PancakeSwap DEX. Select “Connect Wallet”, marked in green below. You will be prompted to connect your wallet through the MetaMask extension and then connect to the BSC network.
5) Select BNB in the first input bar. Select $FACTR in the second input bar, by copy and pasting the address shown below. FACTR token address:
6) Finally, while you own $FACTR tokens, you will need to import the token to MetaMask to view them in your wallet. Select ‘Import Token’ in MetaMask. Copy and paste the $FACTR token address to the ‘Token Address’ bar. Once you import the tokens, you will be able to see your balance.
For a more detailed explanation click here
What is the token model?
How do you build trust and mitigate risk on the platform?
How are the risk levels of RWAOs calculated?
funding available against that asset.
For each pool, a set of criteria are defined (e.g.,. limits that are required to ensure that
the risk within a pool is not weighted in a certain direction). An example is the Debtor concentration limit: the pool must not contain more than a given % of assets owned by a specific debtor.