Real World Lending

Real World Lending is a single-contract, peer-to-peer lending market. There is no pool, no shared liquidity, and no interest-rate model. Each loan is a private agreement between two parties on terms the borrower publishes up front.

• Borrower. Locks an allowlisted tokenized-stock ERC20 as collateral and lists the loan: principal, interest, and duration, all chosen freely.
• Lender. Browses open listings and funds any loan whose terms and collateral they judge acceptable. Funding is atomic: USDG moves directly from lender to borrower in the same transaction that activates the loan.

Collateral is any tokenized stock the contract owner has allowlisted (18 decimals). Principal and interest are denominated in USDG, the Paxos-issued Global Dollar (6 decimals). The contract escrows only collateral; principal never sits in the contract.

• List. The borrower calls listLoan, transferring the collateral into escrow and setting principal, interest, and duration. The listing sits in Open status. A flat protocol fee in ETH is paid with the call.
• Fund. A lender calls fundLoan. Atomically: the lender's USDG principal is transferred straight to the borrower, the deadline is set to now plus the listed duration, the loan becomes Active, and both borrower and lender earn one epoch credit each. The lender also pays the flat ETH protocol fee.
• Repay. Before the deadline, the borrower repays principal plus interest in USDG directly to the lender and the escrowed collateral returns to the borrower. Status: Repaid. No fee on repay.
• Default. If the deadline passes unpaid, the lender calls seize and takes the full collateral. Status: Defaulted. No fee on seize.
• Cancel. While a listing is still Open, the borrower can cancel and reclaim the collateral. The listing fee is not refunded.

The protocol charges a flat fee in ETH, not a percentage. The fee (protocolFee, currently 0.001 ETH) is paid exactly twice per loan:

• by the borrower when listing (listLoan requires msg.value == protocolFee),
• by the lender when funding (fundLoan requires the same).

Repay, seize, and cancel charge nothing. Every fee is credited to the reward pot of the epoch in which it is paid. Anyone can also top up the current pot by sending bare ETH to the contract.

Fees do not go to the protocol. They pool into epoch pots and are paid back to active users, pro rata by credits. Time is divided into fixed epochs (currently 24 hours each):

Each funded loan mints exactly two credits in the current epoch: one to the borrower, one to the lender. When an epoch ends, only a fraction of its pot (payoutRatioBps, currently 2000 = 20%) is distributed; the rest rolls forward as a standing reserve:

The rollover (including integer-division dust) is added to the next epoch's pot. If an epoch had fees but zero credits, the entire pot rolls forward. Users claim finalized epochs at any time with claim; a claim pays credits × payoutPerCredit in ETH.