RWA Lending
Real-World Asset (RWA) lending brings traditional credit markets on-chain, enabling community members to invest in local economic growth while earning transparent yields.
How It Works
The Lending Model
RWA Lending Flow
Borrower
Submits RWA
Verification
Cartesi + zkTLS
Loan Pool
Funds disbursed
Collateralization
80-120%
DSCR Required
≥1.25
Key Features
| Feature | Description |
|---|---|
| DSCR-Based | Loans assessed by Debt Service Coverage Ratio, not credit scores |
| Privacy-Preserving | Zero-knowledge proofs verify income without exposing data |
| Community Pools | Local investors fund local borrowers |
| Transparent | All pool performance visible on-chain |
For Investors
Earning Yield
- Stake USDC into lending pools
- Earn yield from borrower interest payments
- Withdraw with 7-day cooldown period
Pool Selection
| Pool Type | Risk Level | Typical APY |
|---|---|---|
| Conservative | Low | 4-6% |
| Balanced | Medium | 6-10% |
| Growth | Higher | 10-15% |
For Borrowers
Loan Process
- Verify Identity — Complete KYC verification
- Connect Bank — Link account for DSCR calculation
- Apply — Request loan with terms
- Receive Funds — USDC deposited to wallet
- Repay — Monthly payments via smart contract
DSCR Calculation
DSCR = Net Operating Income / Total Debt Service
| DSCR Score | Meaning | Rate Impact |
|---|---|---|
| > 1.5 | Strong | Lower rates |
| 1.25-1.5 | Good | Standard rates |
| 1.0-1.25 | Adequate | Higher rates |
| < 1.0 | Insufficient | May not qualify |
Community Benefits
Local Investment
- Residents invest in their own community's economic growth
- Returns stay local rather than flowing to distant institutions
- Transparent pool performance builds trust
Financial Inclusion
- No credit score requirements
- Income-based assessment is more equitable
- Global access via wallet
Integration with Stablecoins
RWA lending integrates with local stablecoins:
| Integration | Benefit |
|---|---|
| Pool Deposits | Accept local stablecoins |
| Loan Disbursement | Pay out in local currency |
| Interest Payments | Borrowers pay in local tokens |
| Yield Distribution | Investors earn local currency |
Learn More
- Locale Lending Documentation — Full lending platform docs
- Economic Model — Overall economic design
- Stablecoins — Local currency integration