Stellar Community Fund

By Pluto Loans B2B

Pluto Loans B2B

SCF #15

$92.7K

Legacy v4.0 Award

Awarded

Pluto Loans allows users to spend their future yield today. The loan is automatically repaid over time using the profits generated

Products & Services

With Pluto Loans, users can deposit yield-producing collateral and get a loan of their future yield immediately. No liquidation risks. The loan debt is time-based and self-repaying. Now we are working in a new business model, PlutoLoans B2B. Soroban will augment PlutoLoans functionality by allowing: 1) Loan closure after it has been self-paid without user intervention 2) Protect the users' collateral capital in case of yUSDC loss of value by trading the collateral amount in the loan vault for a stable coin.

Argentina has an inflation rate of over 102.5% (https://tradingeconomics.com/argentina/inflation-cpi). The Argentinian peso has devalued 3,609% since 2012 (https://www.xe.com/currencycharts/?from=USD&to=ARS&view=10Y). Argentina has a ban on purchasing foreign currency, but not on cryptocurrencies (https://www.washingtonpost.com/politics/2019/09/06/argentina-just-reinstated-foreign-currency-restrictions-heres-what-you-need-know/). Personal loans in Argentinian pesos have an interest rate of over 101% (https://www.bbva.com.ar/tablas/tasaprestpers.pdf).

Pluto is LATAM-focused, with most of its core team members being based in Argentina, and with Argentina being its main country of operation. Users can make use of regional anchors to buy ARS issued on the Stellar network (https://home.anclap.com/, https://anchors.stablex.org/) or use exchanges to buy XLM. Users deposit yUSDC and get a loan of 50% of their collateral loaned out in pUSD. pUSD is a token backed by the future yield generated by yUSDC, intended to trade 1:1 with yUSDC through various pegging mechanisms (https://ultrastellar.com/assets/yusdc). Self-repaying; a loan gets paid by the yield generated by the collateral of yUSDC. At the maturity of the loan, a user gets back their collateral and keeps their loan. No risk of liquidation. No early cancellation fees. Build on top of other Stellar projects (Ultrastellar’s yUSDC), strengthening the ecosystem.