Lending
(EDSD = platform stable; EDM = fee/burn & governance; Locked/Unlocked EDSD, EMT, PoV as defined)
Core principle
We lend only against cashflows and assets that are proven on-chain. Money never leaves safety rails: funding sits as Locked EDSD, turns Unlocked EDSD when a gate passes, and loans repay automatically from those releases. No proof, no draw. No EMT, no funds.
Where lending fits
On EDMA, trade cash moves in small, predictable steps (milestones), and token assets carry PoV badges and One-Claim references. That gives lenders something they rarely get in the real world: timed, evidence-gated events. We turn those events into credit you can trust: limits tied to stages, drawdowns gated by proof, repayment swept from Unlocked EDSD.
Lending products
Supplier Advance
A revolving line secured by your Locked/Unlocked EDSD slices on a live order. You see the facility on the same timeline you already use; the rail enforces repayment.
Eligibility: Tier S1/S2 sellers with 4–5 clean programs; KYC/KYB passed.
Draws: available after Pre-Ship EMT (production proven) and scale with each gate:
Pre-Ship LTV guide 0–30% of the upcoming slice
On-Board LTV 40–70%
Arrival LTV 80–90%
Repayment: automatic sweep from Unlocked EDSD at each release; no manual settlement.
Use of funds: platform invoices by default; off-platform expenses allowed if covenants met.
Cost: target 3–4% APR, day-count accrual; no prepayment penalty.
Covenants: no off-platform cash-out until facility balance = 0; assignments only to whitelisted partners; do not re-pledge collateral.
What it feels like: you book freight and materials without begging a bank. When On-Board hits, the sweep clears principal + interest; you see a clean line on the ledger.
Top-Up Bridge
A tiny, time-boxed bridge that covers the next milestone until the buyer’s wire lands. Built for Tier B2 buyers with spotless top-up history.
Trigger: Pre-Ship EMT minted; Top-Up due (e.g., T-24h).
Tenor: hours to a few days; hard stop on wire arrival.
Repayment: immediate sweep from the buyer’s incoming top-up EDSD.
Caps: low, per-order and per-org; visible in the dashboard.
Why it exists: keep trucks moving when treasury is crossing a weekend or holiday.
PoV Asset Credit
A secured line against PoV-verified token holdings (e.g., Energy 1 MWh or Carbon 1 tCO₂e). Collateral lives in a custody vault; LTV reflects liquidity, price history, method/region, and revocation risk.
Collateral: PoV tokens with live metadata; retired units are ineligible.
LTV guide: conservative bands (e.g., 30–60%) by method/region and 30-day volume.
Risk controls: price oracles with TWAP; circuit-breakers on thin books; auto-sell/liquidate rules baked into the vault.
Repayment: EDSD; you can repay from sales on EDMA automatically.
How risk stays contained
Proof gates the money. Draws are disabled until the relevant gate passes. For Supplier Advance, LTV jumps at On-Board because BL + seal is objective; it tightens if PSI variance or temperature drift rises.
Collateral stays on-rail. We never lend against assets we can’t pause. Trade: Locked EDSD slices + replacement rights. Tokens: vault custody with on-chain controls and One-Claim integrity.
Waterfall is automatic. When a slice releases, the platform sweeps interest first, then principal, then leaves the borrower’s net. If a stage fails, the loan simply doesn’t advance; there’s nothing to liquidate off-platform.
No early leakage. Off-platform cash-out is blocked while a Supplier Advance is outstanding. You always see the outstanding balance, next sweep, and covenants on the order’s ledger.
Borrower experience
You don’t learn a new tool. Your credit sits on the same screen as milestones.
A credit line appears under the order after Pre-Ship EMT.
You toggle a draw; the rail checks LTV vs the next funded stage; if safe, the draw posts.
At On-Board, the release pushes Unlocked EDSD; sweep clears your balance; the ledger shows “advance repaid.”
If you assign funded-on-proof EDSD to partners (1% fee), those settle from the same release; the rail sequences it for you.
Lender experience
KYC lenders allocate to route pools or org caps with route templates (milestones, SLAs, variance bands) and tier filters (B1/B2, S1/S2). Pools see:
live coverage (Locked EDSD by stage),
EMT cadence and historical variance,
exposure per order/org,
realized APRs and delinquency (should be rare by design).
Governance (EDM holders) sets parameter bounds—LTV corridors, max tenors, and pool caps by lane—and can adjust them with a 72h timelock when data shows a better setting.
Fees & economics
Protocol fee (Trade) is unchanged: 0.5% per milestone, capped per tranche; 50% burns in EDM at each release.
Borrower loan cost accrues daily and is swept at release; it appears as “Advance interest.”
Seller platform fees remain: 1% on funded-on-proof assignments (only when they settle) and 0.5% on off-platform cash-out at completion.
Treasury interest on Locked EDSD (≈75% in short T-bills) continues to post as an independent line with Proof-of-Reserves.
Everything is auditable: receipts, burn hashes, interest accruals, and sweeps are visible per order.
Compliance & boundaries
All borrowers and lenders are KYC/KYB; jurisdictions must be supported. We do not extend credit against unproven events, revoked evidence, or unverified tokens. Legal transfer rules (restricted holdings, sanctions), must-fund before shipping, and One-Claim are enforced by the rail and are not governed by lending agreements.
Plain recap
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