Bulla launches FrendLend: On-chain, p2p lending

Bulla’s latest solution, FrendLend, is an game-changing dApp that facilitates short-term on-chain lending. FrendLend is the first primitive in p2p tokenized lending. This tool, part of Bulla Finance, our new set of web3-business specific features, helps users create, manage and pay short-term, simple-interest loans between each other.

How it works

Users can offer/mint a tokenized agreement, or “FrendLend,” to a friend or colleague with custom terms, including time period, amount of loan and a simple fee. Anyone accepting a FrendLend offer will be able to see the terms inside of the tokenized agreement and can accept or reject the offer. Upon acceptance, that person receives the principal and the on-chain agreement becomes a “loan payable” to the borrower on their Bulla dashboard. It becomes a “loan receivable” for the lender on their Bulla dashboard.

A borrower can redeem the FrendLend for the principal plus fee at any time or at maturity date.

How we’re different

While many protocols claim to offer tokenized loans, (like Goldfinch, Atlendis and Clearpool) it is usually the case that the borrower or the lender always interacts with a fund or pool. Unlike these protocols, FrendLend is a direct lending agreement with a particular EOA or wallet or even a treasury. Importantly, there is no need for a pool, the loan is pure p2p. It is not designed to finance trading or staking. Its purpose is to facilitate small business loans (micro-loans) between people and/or businesses. It is the on-chain equivalent of a friend or colleague asking, “Can you lend me $10 for lunch?”

FrendLends and tokenized invoices could become an added source of credit signal on-chain. Uncollateralized borrowings and paybacks, when added to other borrowings, can make credit signals more meaningful and could help finance bigger projects.

Impact

With FrendLend, there is no third party or bank involved, anyone can lend to anyone else on any terms. This allows groups of people who know each to lower the cost of borrowing and document it. This also diversifies the way in which people can start or finance a business, especially for unbanked and underbanked people.

Reach

FrendLend is accessible to Bulla users the moment they connect their wallet. Bulla operates on 14 chains and has a global reach.

Target user

Friends working in web3 who know each other and who might want to offer a simple short term low-hassle loan to their friends or business acquaintances.

BullaNetwork is a revolutionary new Web3 accounting protocol that, through its app, BullaBanker, allows users to quickly and easily conduct personal and commercial transactions on-chain.

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