The Bulla protocol mints credit relationships between people, and FrendLends operate like simple on-chain “IOUs.”
If you want to offer a loan on Bulla, you can access Bulla’s financing feature from your Bulla dashboard. The app allows you to mint an NFT loan offer agreement, like the one pictured below. On it, you enter the wallet address of the borrower, set the principal and interest terms and then send the NFT agreement to the borrower.
At the moment, the loan is a ‘fee for the principal’ agreement. This means it can be paid back at any time, but the fee never adjusts for early repayment. It is meant to be a very simple short term loan. In the future, Bulla will offer more flexible loans with features like early pay, compound interest and valid time period for an offer.
The recipient accepts the offer, the NFT loan offer status goes from ‘offered’ to ‘paying’ and Bulla sends crypto from the lender to borrower wallets (no escrow). The lender has approved the transfer of stable tokens at time of issue, however if the loan is accepted but the lender has in the meantime no balance, the process will fail. At the end of a successful process, the borrower will see a loan payable and the lender a loan receivable.
Bulla can facilitate these P2P loans across all 14 chains that Bulla supports, including Mainnet, Polygon and Avalanche and using any ERC-20 token.
The completed NFT offer and redemption will flow through to the ‘payments made or received’ panels on the user’s respective Bulla dashboards. Any pending loans can be viewed in the Bulla finance dashboard.