To introduce a new mechanism for Peer-to-Peer lending, backed by NFT assets, with a seamless experience for repayment and collateral.

Introduce an ERC20 token to backed liquidity. Maybe on DogeChain?

DogePound NFT holders can deposit a minimum amount based on their NFT holdings, allowing them to access funds through the use of the DogePound native token for lending purposes.

Multiplier:-For individuals holding

2 NFTs: 1.65x

5 NFTs: 3.5x

7 NFTs: 5.5x

However user with higher tier can participate in any available pools.

How it works

Each user with a DogePound NFT will be able to lend or borrow funds based on a multiplier determined by the system.

Anyone can become the liquidity provider (LP) by depositing and equivalent value of the token with a pair available.

In practice, five or more scenarios may arise:

Case 1.

Each user pools the same amount of funds, but only User A requires the funds.

The same amount of interest is levied proportionally, and only user A is responsible for paying it. User A must contribute at least the required amount of funds divided by the number of users. A certain percentage of the interest is shared with the lenders, and user A will receive the TotalAmountPooled-TotalAmountPooled/N Where N is number of users. The amount deducted from user A is the only payment for interest and contribution for the next round, while the rest of the users receive interest until their invested money is not met. The next time user A repays the loan, at least one user will drop out of the pool and stop receiving interest because user A has made a partial payment of 1/N. The payable interest for user A is then distributed proportionally among the remaining users who have lent him money.

Case 2.

Users A, B, C, D, and E need to receive $500 from a pooled amount of funds. This amount will be distributed to each user at a specified interval of time.

No interest needs to be levied, but an incentivized system of interest will be implemented where users B, C, D, and E pay less than user A. This is because they receive their funds later than user A. When user A receives the funds, they must contribute at least the required amount of funds divided by the number of users. A certain percentage of this will be distributed equally among the remaining users, so they contribute less than the required amount. This way, the person who receives the last share benefits from the system.

This way, users B, C, D, and E will benefit from a reduced interest rate or less contribution in future.

Case 3.

When users contribute different amounts to the pool for user A.

With these we implement to calculate interest rate based on contribution is to use the proportional method, where each person's interest rate is proportional to their contribution as a fraction of the total pool.

To calculate the interest rate based on contribution, we use the proportional method. Each person's interest rate is proportional to their contribution as a fraction of the total pool.

The formula is: Interest rate for each person = (Individual contribution / Total pool) * Total interest rate. User A pays interest proportionally based on the amount contributed by each user. The interest rate is dynamic and can change over time based on the contribution made by the lenders . However, a fixed threshold percentage is maintained, and it only changes between users. The base remains the same.

Case 4.

When each user that contributed wants the funds say $500, However each person contributes a different amount of money.

Each person pays interest based on their contribution to the pool, with those who contribute less paying more interest. The contribution pool can change and using NFTs as collateral is very important.

Case 5.

When only two parties are involved

NFTs on the contract serve as collateral in the event of unexpected circumstances. The lender is also entitled to receive a designated interest.

• Formula:

  Base: ((70/100) * (Floor Price*Multiplier)) + (TotalPooledAmount/N)

• Borrowing Tier Limits: (Floor Price * Multiplier + Pool Amount)

• * Instant conversion of Floor Price to current market price of ETH/Equivalent

  Brief Introduction:

  User A needs $500 for 3 days and is backed by User B, C, D, and E who each contribute $100 to reach the needed amount. However, all their NFTs token are on hold by a contract under certain circumstance and period of time until all the parties and execution of the process is over.

  The collected funds from the group go into the liquidity pool and User A receives the requested $500-(TotalPooledAmount/N).

  To implement risk management protocols to mitigate instances of financial fraud.

  If User A fails to repay the remaining amount to the pool for future users, the held NFT in the contract will be burned and a new token will be minted to compensate for the value of the burned NFT, reducing the loss. Thereby NFT supply decrease.

• Note: The user's share for the next contribution and % will be deducted from their current share.

  Tokenomics:

  To be decided.

  Illustrating a model instance:

  First of all Verify NFT Ownership and transfer it to the contract.

After that, people will collect money together and pool it over a contract.

Governance and Proposals:

A governance dashboard will be activated after the pool is established. If necessary, the following proposals can be voted on: a borrower's request to extend the pooling period with added penalty charges and any user's request for early withdrawal due to an emergency or unexpected need for funds. The voting threshold has not been determined yet.

Reserve:

Implement a reserve system where the annual percentage yield (APY) reward is high at the beginning to ensure liquidity with an asset pair linked to our native token. The annual percentage rate (APR) for borrowing and the APR for depositing will be determined at a later time.

To implement a fun and interactive dashboard for a lending protocol Something Like this?

I know this sound’s like a five year old noob trying to explain something please bear with me.. The rest is about to start here and i know there’s already a question in your mind.

• What guarantees users that $400 will be paid back in time to each user?

  - Maybe a collateral like system works there(Where user(X) has to hold stable coins/native token of the project of some percentage.

Some basics Incentives to be provided to the party that pool from liquidity.

However I am talking about a traditional peer-to peer system of lending which is quite often common in my country where each user contribute a certain amount of money in certain period of time,and upon maturity each user get paid the amount they have pooled in.

I do believe this is a very good idea and innovative way to prevent frauds and third party on this peer-to-peer lending system.

Certain limitation are always there on the traditional methods:-

1. When user are unable to repay the amount

2. Runaway after benefiting

   But this can be solved with collateral hence optimised the problem.

I have a brilliant ideas that doesn’t work in 10,000 ways yet i learned alot during the process even if this was never a concrete solution. As a tech enthusiast and firm believer of blockchain technology, I have seen many possible ways that seems to work out.

This is just for the eyes i do have alot of in-depth ideas to share on this.

I would definitely love talking about this in details or in person.