# 🐼 Pawnda

## Introduction

Pawnda is a decentralized pawn shop, based on a marketplace model. On side side, borrowers can request loans and back them using Non-Fungible Tokens (NFTs). On the other side, lenders can make profit by lending funds.

## How does it work

Two different kinds of users can use Pawnda:

- **Borrowers:** People looking to borrow funds and willing to pawn a (or several?) digital asset as a collateral for a loan.
- **Lenders:** People looking to make money by lending funds, without taking risks.

### Steps by steps

Alice needs some extra cash. She owns some valuable NFTs, a couple of lands in Decentraland and some rare CryptoKitties, but she doesn't feel like selling them.

Here's what she can do:

1) Go to Pawnda website and get a precise estimate of the price of her NFTs

2) Post a loan request, specifying the following:

- How much she wants
- The interest rate she can offer
- The due date of the loan
- Which assets will be used as collaterals

3) Bob, a lender, will be able to see the loan request. If he thinks that it's a good deal, he can accept it

4) The funds will be send from Bob to Alice, and the assets will be locked in the smart-contract

5) Alice will have to pay back the loan within the agreed timeframe. If she does, she will get back her NFTs. If she doesn't, Bob will receive the NFTs, as a compensation

## Why use Pawnda

- Banks loans are not suited for this kind of needs
- Interests offered by shark loans are too high
- Pawnda concept is safe for the lenders and the borrowers, through a smart-contract, and a concept with no risks involved
- Pawnda offers a win-win situation: borrowers can have access to loans with low interests and lenders can make money with no risks (worst case scenario, they will get the NFT as a compensation)

## More ideas

- Create a DAO (Pawndao) to manage the project
- Maybe launch an STO to get some funds
- Offer a solution to physical pawn shops to use Pawnda
- Metrics for the users (open pawns, reimbursed, funds lended, …)
- Support for ERC-721 and ERC-1155
- Be able to pawn bundled assets
- Support for multiple tokens (using Uniswap)
- Support for multiple blockchains (Tron, EOS, Loom, ...)
- Support for securities
- Add a KYC to manage securities
- Add zkSnarks to allow private loans

## Risks

### High risk

- Game assets

### Average risk

- Companies / DAOs shares / Securities

### Low risk

- Real estate

### Safe risk

- Assets backed by another stable asset (?)