Asset onboarding

Svim Finance works closely with a robust network of strategic partners to source high quality yield-bearing assets. We also work with professional and reputable service providers to ensure a comprehensive and seamless process. These partners may include legal advisors, appraisers, risk assessors, operational experts and other professionals who specialize in various aspects of asset tokenization and loan management.

The process of requesting a loan on Svim Finance liquidity pool involves several structured steps. This ensures transparency, compliance, and efficiency, allowing asset issuers or loan borrowers to leverage their real-world assets to access liquidity. Here’s an overview of the process:

Initial application and asset listing:

• Application submission: Asset issuers or loan borrowers begin by submitting an application to the tokenization protocol. This application includes detailed information about the asset or loan, such as property details, loan terms, and the purpose of the funds.

• Asset evaluation: The protocol performs a thorough evaluation of the asset to determine its eligibility for tokenization. This may include appraisals, inspections, and other forms of due diligence to assess the asset’s value and condition.

Due diligence and compliance:

• Legal and regulatory compliance: The protocol ensures that the asset complies with all relevant legal and regulatory requirements. This includes verifying ownership, ensuring there are no legal encumbrances, and meeting any jurisdiction-specific regulations.

• Risk assessment: A comprehensive risk assessment is conducted to evaluate the potential risks associated with the asset or loan. This includes credit risk, market risk, and operational risk.

Tokenization process:

• Asset tokenization: Once the asset is approved, it is tokenized using blockchain technology. This involves creating digital tokens that represent ownership or claim to the real-world asset. Smart contracts are utilized to automate and enforce the terms of the loan.

• Fractionalization: The asset can be fractionalized, allowing multiple investors to own a portion of the asset. This enhances liquidity and makes it accessible to a wider range of investors.

Listing on the investment liquidity pool:

• Liquidity pool creation: The tokenized asset is listed on the protocol’s liquidity pool. Investors can now purchase tokens, providing the necessary capital to fund the loan.

• Market making and liquidity provision: Market makers and liquidity providers may be involved to ensure there is sufficient liquidity for the tokens. This helps in maintaining a stable market and facilitates easier buying and selling of tokens.

Fund disbursement and management:

• Loan fund disbursement: Once the tokens are purchased, the loan amount is disbursed to the borrower. This is typically done in stablecoins or other agreed-upon cryptocurrencies.

• Ongoing management: The protocol manages the loan, including interest payments, principal repayments, and any other agreed-upon terms. Smart contracts automate these processes, ensuring timely and transparent transactions.

Monitoring and reporting:

• Asset monitoring: The protocol continuously monitors the asset to ensure it maintains its value and complies with the loan terms. This may involve regular updates, audits, and inspections.

• Investor reporting: Regular reports are provided to investors, detailing the performance of the asset, loan repayments, and any other relevant information. This enhances transparency and keeps investors informed about their investments.

Repayment and pool closure:

• Loan repayment: The borrower repays the loan according to the agreed schedule. Smart contracts automatically distribute repayments to token holders.

• Pool closure and token burning: Once the loan is fully repaid, the tokens are burned, and the asset is returned to the borrower. If the loan defaults, the protocol may initiate collection, liquidation or other recovery processes to protect investors.

Our structured approach ensures that the process of requesting a loan on an RWA tokenization protocol is secure, transparent, and efficient. It provides asset issuers and loan borrowers with access to liquidity while offering investors stable returns, diversification benefits and risk assurance.