TheFi
TheFi introduces financial tools to super-power your RWA
What is "TheFi"
TheFi is the bridge between Real World Assets and the world of DeFi (Decentralized Finance) transforming the way lending and borrowing are perceived and executed.
By leveraging RWAs, we offer users a tangible, asset-backed approach to DeFi, allowing for more accessible, transparent, and reliable financial services. Whether you're looking to lend, borrow, or simply explore the potentials of DeFi, TheFi provides an intuitive and user-friendly environment.
Loan & Borrow
We are excited to introduce a decentralized, demand-driven approach to asset-backed loans, an innovative feature of the TheFi ecosystem.
Borrowers can leverage any asset they've bought in our ecosystem as collateral for a loan, unlocking new possibilities for capitalizing on their investments while Lenders have the opportunity to offer liquidity against a wide array of luxury assets.
This system creates a symbiotic financial environment where lenders can earn returns on their investments, and borrowers can access the cash they need, precisely when they need it. And most of all, always in the most secure way; to protect lender interests, we indeed cap the loan amount to a maximum of 70% of the asset's assessed value ensuring that the loans remain secure and of significant value, providing a safety net even in instances where a borrower might default.
We'll be opening the possibility for Lending only for "Selected People" like market makers, DeFi experienced people, and others
How does it work:
Borrowing
Lending
Fee -> 3-5% of Fee on the Borrowing APY
Refinancing
With our refinancing option too lenders will have the flexibility to withdraw their offer prematurely by initiating a refinancing call on any active loan.
At any stage of an active loan, lenders will have the option to rescind their offer. This is achieved by sending out a refinancing call. When a lender opts to make a refinancing call, the associated loan is then moved to an auction setting providing an opportunity for other lenders to step in and take the loan, thereby beginning to earn interest on it. If there is no response to the refinancing call from either new lenders or the borrower (where the borrower has the option of repaying the debt), the original terms of the loan remain in effect.
Note: Lenders that choose to make a refinancing call will not get any interest.
Luxury Index
Expanding the horizons of investment, we are set to introduce the 'Luxury Index' – a dynamic feature allowing users to effortlessly diversify their investment portfolios through Fragments.
Subscribing to various Luxury Indices, users can gain broad exposure to an array of luxury assets, strategically balancing their investment risks and enhancing potential returns. Key examples of these indices include:
Fine Art Index: Curated selections from the world of art.
Luxury Watch Index: A collection of high-value timepieces.
Combined Luxury Asset Index: A comprehensive mix of diverse luxury assets.
Each index will feature distinct listings, thoughtfully composed and diversified. They are structured to include a blend of direct asset purchases and a Dollar-Cost Averaging (DCA) strategy applied over time to fractions of these assets.
This approach not only simplifies investment in high-value luxury items but also aligns with sophisticated investment strategies to optimize portfolio performance.
Fee -> 2% of Service Fee
Guaranteed Asset Protection Policy
In an era where blockchain technology is reshaping business models, we introduce the first Real-World Asset (RWA) Insurance Protocol. This innovative protocol allows users to ensure the value of their assets immediately upon purchasing selected items.
Our process involves drafting an insurance policy based on the market value of the asset. The premium is calculated taking into account the agreed value of the asset, its risk of depreciation, and other factors such as historical price trends and the item's rarity. This policy is a safeguard against market fluctuations, guaranteeing that if the market value of the insured asset falls below the agreed value, the insurance will buy it back at that price. This feature essentially locks in the asset's value at the time of insurance.
Policy durations are flexible, with options to lock the price for 3, 6, or 12 months. A longer duration for the insured value results in a higher premium (For example 3 months = 1$/month; 6 months = 2$/month; 12 months = 3$/month). At the end of the term, the asset can be reappraised, and the policy terms can be adjusted, should the user wish to continue the insurance. This offers a dynamic approach to asset insurance, allowing for adjustments in line with market changes.
Fee -> 3-5% of Fee on the Insurance Premium
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