Self Repaying Loans

This page talks about the Self Repaying Loans feature of ONEZ

Self-repaying loans are designed to repay themselves over time using the funds generated from the borrower's activities within the DeFi ecosystem. These loans are implemented using smart contracts, which are self-executing agreements enforced by the blockchain when certain predetermined conditions are met.

In the context of DeFi, self-repaying loans offer several benefits compared to traditional loans:

1. Access to capital: Self-repaying loans provide borrowers with access to capital without a centralized authority to enforce the terms of the loan.

2. Lower credit requirements: Borrowers with limited credit history can access capital more easily through DeFi self-repaying loans.

3. Automatic repayment: The smart contract automatically deducts loan repayments from the borrower's collateral and transfers the funds back to the lender, reducing the risk of default.

Users deposit collateral into the smart contract, and the loan is automatically repaid as the collateral generates interest.

Self-repaying loans are designed to be repaid using the funds generated from the collateral or other activities within the DeFi ecosystem.