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Underwriters
- Underwriters provide collateral and liquidity. They participate in the credit underwriting process and act as Liquidity Pool providers. They provide Trade Tokens (ERC-3643) as collateral to secure payment guarantees for trade finance transactions.
Potential Rewards and Incentives
Underwriters earn a premium for their role in providing collateral and conducting credit evaluations.
Underwriting Premium:
- Underwriters earn a yield through the Underwriting Premium specified in their Credit Underwriting Offer. This premium is paid by the Buyer/Seller for securing the PayPledge with collateral.
Strategic Benefits:
- Market Positioning: By underwriting transactions on PayPledge, Underwriters establish themselves as key players in a blockchain-based trade finance ecosystem, gaining visibility and credibility among Buyers, Sellers, and Payment Processors.
- Scalable Opportunities: The ability to underwrite multiple transactions, subject to sufficient Trade Tokens, allows Underwriters to scale their participation and rewards, leveraging the platform’s efficiency and transparency.
- Liquidity Access: Successful transactions result in the release of collateral (Trade Tokens) back to the Underwriter via the PayPledge Contract upon discharge (e.g., through
initiateDischarge). These tokens can be reused for new underwriting opportunities or converted back to their underlying crypto collateral (e.g., USDT) through the Bridge Service, ensuring liquidity for ongoing operations.
Acquiring Trade Tokens: Learn the process of obtaining the collateral tokens used on the platform via coin deposits and the bridging service.
Providing Collateral: Understand how to submit Credit Underwriting Offers (CUOfs) and commit collateral via the CollateralManager contract.
Collateral Release and Claim: Learn what happens to the collateral upon successful repayment or in the event of a default.
Trade Token Details: Explore key features of the Trade Token (ERC-3643) including leverage and overleverage tracking.