Introduction
How does it work?
Paystream mainly consists of P2P engine and Underlying markets
- P2P Matching: Directly connects borrowers and lenders to optimize rates.
- Fallback to Liquidity Pools: Uses platforms like Kamino for unmatched requests to maintain liquidity and rewards for the lenders.
- Stream-Based Repayments: Borrowers repay loans over time through customizable payment streams, allowing collateral to earn yield
- User will put collateral in stablecoin only that will go to the underlying protocol and will generate a supply rate based yield
- User will pay the interest fee either in advance or along the repayment periods Note - if any time the user misses the repayment collateral will be reduced to ensure the protocol doesn’t go into bad debt