Loanz
Get a stablecoin (USDC) loan without selling your FanzUp tokens.
Only LaunchPass members have access to Loanz products.
Highlights
Everyone is approved
No application or approval process is required.
No personal information is collected.
All loans have a 10% Collateral Deposit fee.
Loans are provided in a decentralized manner and controlled by smart contracts on the blockchain.
Collateralized Loans
FanzUp tokens are deposited and held as collateral to secure the principal loan amount. In a case where the borrower doesn’t repay the loan with USDC, the token collateral is liquidated (sold) to cover the Loan Payoff.
Collateral Value = FanzUp Token Value - 10% Collateral Deposit Fee
Loan to Value (LTV)
A high loan-to-value (LTV) of the collateral provided by the borrower can be loaned, making FanzUp's loan program very attractive compared to other permissionless (no application or documentation required) DeFi or TradFi loan programs.
LTV % = (Principal Loan Amount / Collateral Value) x 100%
The unique price mechanics of FanzUp tokens eliminates the risk of liquidation due to value erosion of the underlying collateral assets.
In other DeFi loan protocols, if the asset used for collateral reduces in value, it could trigger a liquidation event. With a FanzUp loan, if the collateral assets increase in price during the term of the loan, the borrower is returned those higher value assets when the loan is repaid.
How It Works
A borrower selects the loan amount, loan-to-value (LTV) and deposits the required Collateral Value in the form of any FanzUp token. Loan limits and simple interest fees are based on the LaunchPass Level:
Inner Circle
1
30000
10%
14 days
0.150%
VIP
2
12000
10%
13 days
0.175%
Die Hard
3
4800
10%
12 days
0.195%
Fanatic
4
1920
10%
11 days
0.215%
Mega Fan
5
750
10%
10 days
0.230%
Super Fan
6
300
10%
9 days
0.240%
Fan
7
120
10%
8 days
0.250%
Multiple loans can be borrowed, until the total of all loans equals the Max Loan Amount.
Simple Interest
After the Interest-Free Period ends, simple interest is charged daily on the principal loan amount and added to the Loan Payoff.
Loan Payoff = Principal Loan Amount + Simple Interest Fees
Loanz products are optimized for use in LaunchPad presale events where the borrower can source capital without selling their FanzUp tokens.
Paying off a Loan
When the Loan Payoff is paid with USDC, the borrower will be returned the Collateral Value of FanzUp tokens deposited as collateral.
The Collateral Value will increase if the FanzUp tokens used as collateral increase in price, reducing the risk of liquidation and benefiting the borrower when the loan is paid off.
Loan Liquidation
A liquidation event will occur if the Collateral Value is less than the Loan Payoff.
A borrower can prevent liquidation by adding FanzUp tokens as collateral (increasing the Collateral Value), subject to the 10% Collateral Deposit fee.
When a loan is liquidated, the collateral will automatically be sold by the smart contracts to satisfy the Loan Payoff.
Self Liquidation
A borrower may force instant liquidation through the Loanz dashboard at any time.
Collateral is sold to satisfy the Loan Payoff and any remaining balance of tokens is returned the borrower.
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