Defactor is the integration layer and tooling for TradFi businesses to leverage alternative finance with DeFi.
Defactor operates by facilitating the connection between Asset Originators and Liquidity Providers, with the aim of providing transaction funding. In exchange for this service, Defactor charges a fee. Additionally, the platform offers dynamic risk reporting, which provides visibility and transparency to all three parties involved: Defactor, Asset Originators, and Liquidity Providers.
Defactor’s platform offers Liquidity Providers access to a new asset class of private credit, specifically a fixed-income product in the realm of DeFi. Moreover, our business model’s Real-World Asset component provides LPs with stability by offering non-correlated asset allocation and increased diversification opportunities.
Defactor stands out by placing significant importance on risk management. The platform subjects Asset Originators to a fair, yet rigorous due diligence process to foster trust among all parties involved in the protocol. In the near future, asset originators on Defactor’s platform will benefit from a reduction in their cost of capital and better payment terms by establishing a track record of timely repayments. Along with the collateral Asset Originators provide, they are also required to make a contribution to the junior tranche, ensuring that they have a stake in the game and are responsible for initial losses in case of defaults.
Small and medium-sized enterprises (SMEs) worldwide encounter an inadequate and unjust allocation of financing that obstructs their progress and hampers broader economic development. Many financially stable businesses lack the funding they require, while DeFi investors seek a safe haven yield in the face of market instability. Defactor’s platform bridges the gap between these two groups, providing a win-win solution for all parties involved.
What is FACTR Token?
The native token of the Defactor ecosystem is called FACTR. The following use cases are intended for the token:
- Network access:To use Defactor platform and services, asset originators need to have FACTR tokens. These tokens will be kept in a smart contract throughout the funding term, resulting in a decrease in their circulation. Additionally, asset originators may be charged a fee for each funding term.
- Governance:FACTR is planning to implement a governance system in the near future, which will be aimed at managing and optimizing the network. This system will enable token holders to actively participate in community decision-making.
- Staking:FACTR token holders who participate in staking will be eligible to receive rewards. Staking requires locking the tokens in a smart contract for a specific duration, and the rewards are determined based on the staking period.
- Buy-back model:Defactor has plans to regularly allocate a portion of their revenue for the purpose of buying back FACTR tokens.
What is the current price of FACTR Token?
There is a maximum quantity of 300,000,000 FACTR. The highest price paid for Defactor
(FACTR) is $0.8895, which was recorded on Nov 14, 2021. At the time of writing, FACTR market cap is 6,526,051. The current FACTR token price is $0.08924 per coin. The 24-hour trading volume for the coin is $494,919.
FACTR Token Economics
Association: The Defactor DAO will take charge of the tokens reserved for the association after a governance mechanism is established and the management of operations has achieved an adequate level of decentralization.
Private Sale: Buyers who took part in the presale and launch sale received an allocation of these tokens.
Staking Rewards: Staking rewards are distributed via staking contracts, which involve the locking of FACTR tokens by token holders.
Ecosystem & Partnerships:FACTR tokens may be granted to partners and other entities within the Defactor ecosystem as a means of incentivizing ecosystem expansion or acknowledging achievements that have had a favorable impact on the ecosystem.
Team & Contributors: Tokens allocated to the team and advisors will be subject to a three-year vesting period.
How Does Defactor Work?
- Application submitted to the Defactor platform by Asset Originator
- When performing loan due diligence, KYC/KYB checks are conducted.
- The Defactor team evaluates the financing request and decides whether to accept or reject the submission.
- Successful applications are then asked to uploads assets onto the platform, which serve as collateral for the transaction
- Until the payments are paid, the assets are tokenized and kept.