Peer-to-Peer IRM

The interest rate model related to the Peer-to-Peer Borrowing model.


The interest rate model for the Peer-to-Peer model will be based on a 10% margin between the APR charged to borrow and the APY the lender receives. From this 10% margin, 5% will go to the insurance fund, and 25% of the net interest income after insurance fund will be made available to net interest income available to Pixel Panther holders.

User-Defined APR Pricing

Since the risk of lending is being assessed by the borrowers and lenders, the platform will not adjust interest rates on this product class. Once a rate it set it will remain static for the life of the loan. When the borrower requests a loan, the greater the interest rate they request to borrow at, the quicker the community will be willing to offer a loan. The lender will take the collateral and duration into affect when deciding to provide liquidity.