The Pine platform (pine.loans) serves as a marketplace decentralized application (“dApp”) for asset-backed loans. It is a platform for multiple lenders to list their loan offerings and allows NFT holders to initiate and extend loans with the best terms available on the market. In the back, the platform operates similar to an exchange that provides an offer book structure and guarantees enforceability of the terms.
The Pine platform offers a lenders portal for lenders to manage their segregated pools and loan offers. Lenders can use this portal for pool creation, loan management and collateral repossession. Other features, such as loan marketplace analytics, will be available to help lenders optimize their yield generation and risk management.
The Pine platform offers different financing options for the purchasing of NFTs on open marketplaces. Buyers can bid on or outright buy a NFT with a mortgage or to finance the purchase of a NFT using their existing portfolio of NFTs as collateral.
Collateral Listing is a critical piece to enabling margin trading of NFTs. Users would be able to list their NFTs for sale even if they are currently serving as a collateral of an outstanding loan. A key constraint is that the sales price must be greater than the total outstanding loan amount. When the sale is done, part of the proceeds would first be used to repay any existing loan associated with the NFT automatically and the seller can pocket the rest.
The loans by default are not negotiable instruments. Pine endeavors to build the most efficient market by tokenizing the loans and creates secondary markets for both sides of the credit market. Tokenized lender position (promissory note) and tokenized borrower position (collateral receipt) will be transferable and freely tradable in the secondary credit markets.
The protocol works with third-party on-chain compliance platforms to enable address screening. Lenders or borrowers can opt in to be compliant if their address is verified to be below certain risk levels. They can then further choose to only interact with counterparties that are also compliant on the protocol.