🏢Qualified Borrowers

We are your easy path into DeFi!

Think of borrowers that require substantial funds to operate and/or trade with various crypto strategies. They are fully licensed and regulated independent companies. In crypto, they turn to DeFi platforms like Skew, where individual lenders offer their crypto as a loan for a fee. These loans have clear rules: the borrowed funds must be repaid within a set period of time (such as three months), and while the funds are borrowed, the firm pays interest in the same native token that was lent on a fixed-term basis.

Borrowers Explained :

In the context of platforms like Skew, borrowers are companies that engage in large-scale financial transactions. They operate in all global markets, including traditional and decentralized finance. These borrowers are not individual retail traders but rather companies such as:

• Hedge Funds: Investment funds that employ various strategies to earn active returns for their investors.

• Bitcoin Miners: Miners are firms and individuals using technology to power blockchain operations.

• Asset Management Companies: Firms that invest pooled funds from clients into a variety of securities.

• Investment Banks: Financial intermediaries that provide various financial services, including underwriting debt and equity, facilitating mergers, etc.

• Private Equity Firms: Firms that invest in private companies or engage in buyouts of public companies, often to restructure them.

• Venture Capital Firms: Firms that invest in early-stage companies with high growth potential.

• Proprietary Trading Firms: Firms that trade stocks, derivatives, bonds, commodities, or other financial instruments with their own money.

Terms for Skew Borrowers :

• Fixed Duration Loans: Loans are established for a fixed duration of three months. This fixed term provides predictability for both lenders and borrowers regarding the loan duration and return on investment.

• Crypto Collateral De-Risk: Loans backed by crypto are inherently risky in volatile markets. However, with Skew, collateral is not at risk of liquidation as long as all loan terms are met.

• 100% Loan-to-Value Crypto Loans: Borrowers using crypto as collateral can borrow up to 100% of the collateral value at the time of loan origination, subject to due diligence and risk management review.

• Weekly Interest Payments: Lenders receive interest payments at regular intervals, specifically weekly, in the same type of token they deposited. This arrangement ensures a steady return on investment for lenders.

• Settlement Upon Term Completion: At the end of the three-month loan term, borrowers are required to fully settle their loans. This involves repaying the borrowed amount in full.

• Use of SKW Utility Tokens: Fees, including the opening fee for loan extensions, are payable in SKW tokens. This use of a platform-specific token integrates the platform's native token into its financial ecosystem, enhancing its utility and demand.

Reserve Fund Wallet

The purpose of the Reserve Fund Wallet is specifically designed to ensure the availability of funds for retaining our specialized Law Firm, a critical measure for handling any default proceedings or legal matters that may arise. This strategic allocation of resources underscores the protocol's commitment to legal preparedness and risk management, ensuring that expert legal support from our specialized Law Firm is readily accessible to address and navigate through potential legal challenges efficiently.

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