Product

Stakeholders

In order to support the growth and development of Water Finance ecosystem, Water Finance managed the governance of the DeFi protocol via decentralized voting, including designing and upgrading smart contract, updating the parameters of protocol, selecting service providers, and emergence management. The Water Finance protocol has five core participants: Borrowers, Backers, Liquidity Providers, Auditors, and Community Governance.

Borrowers:

Borrowers are participants who seek financing from the protocol. They initiate term sheet which covers interest rate, payment terms, period and etc.

Backers:

Backers supply first-loss capital on their Borrower Pools. Backers can achieve higher returns when the Senior Pool leverages them with additional senior tranche capital.

Liquidity Providers:

Liquidity Providers supply capital to the Senior Pool in order to earn passive yield. The Senior Pool automatically allocates their capital to the senior tranches of Borrower Pools.

Auditors:

Auditors perform human-level checks on Borrowers to confirm they are legitimate, helping to secure the protocol against fraud. Borrowers need the approval of Auditors to borrow from Borrower Pools.

Community Governance:

Community members make collective assessment on each financing proposal.