🏧Lending mechanism
Overview
Lending on the JamFi platform enables borrowers to access loans by pledging cryptocurrency (ETH, USDT, UCDC) as collateral, while lenders provide liquidity to fund these loans. Built on the Ethereum blockchain, the process is automated through smart contracts, ensuring transparency, low fees, and security. This mechanism promotes financial inclusion, particularly in South Africa, offering accessible loans for business or personal needs.
Core Features
JamFi’s lending mechanism is designed for simplicity and efficiency:
Decentralization: Smart contracts eliminate intermediaries, reducing costs.
Transparency: All transactions are recorded on the Ethereum blockchain.
130% Collateral: Borrowers pledge cryptocurrency equal to the loan amount.
Accessibility: Minimal verification, including M-Pesa for Kenyans.
Global Reach: Available to users in Kenya and worldwide.
How Lending Works
The lending process on JamFi follows a straightforward sequence:
Verification: Borrowers connect a crypto wallet or, for Kenyans, verify via M-Pesa to confirm identity.
Collateral: Borrowers deposit cryptocurrency equal to the loan amount +30%(130% collateral) into a smart contract.
Loan Issuance: The smart contract verifies the collateral and disburses funds from a liquidity pool funded by lenders.
Repayment: Borrowers repay the loan with interest via the platform.
Lender Protection: In case of default, the collateral is sold to recover funds for lenders.
Lending Schema:
[Borrower] -> [Verification (M-Pesa/wallet)] -> [Deposits 130% collateral] -> [Receives loan]
[Lenders] -> [Fund liquidity pool] -> [Receive interest]
[On default] -> [Collateral sold] -> [Funds returned to lenders]Participants
Borrowers: Individuals or entrepreneurs with cryptocurrency. Kenyans can use M-Pesa for easy verification to secure loans for business, education, or other purposes.
Lenders: Investors (individuals, African companies, funds, investors) contributing cryptocurrency to liquidity pools. Presale offers more tokens for participation.
Security and Safeguards
Collateral: 130% collateral minimizes default risks. Non-repaid loans trigger automatic collateral sales.
Oracles: Real-time collateral pricing via oracles.
Audits: Smart contracts are vetted by partners like Smart Dec to prevent vulnerabilities.
Compliance: Partnerships with SolarisBank and Kenya’s Central Bank ensure regulatory adherence.
Why Choose JamFi?
JamFi’s lending combines innovation and accessibility:
M-Pesa verification simplifies access for Kenyans.
Low interest rates due to automation.
Full transparency via blockchain.
How to Start?
To engage in lending on JamFi, borrowers can connect a crypto wallet or, for users from South Africa, verify via M-Pesa, deposit 130% collateral, and apply for a loan after the $JAMI token listing, while lenders can purchase $JAMI during the presale or on Uniswap, complete simple registration, and contribute to a liquidity pool, accessing the platform through the website or mobile app.
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