Buy Now Pay Later (BNPL)
The Buy Now, Pay Later (BNPL) feature in RainFi allows users to acquire assets with a small down payment, offering flexibility in managing finances while gaining immediate access to NFTs. Below is a detailed explanation of how BNPL works:
1. How BNPL Works
Down Payment: The user makes an initial payment based on the pool configuration.
Example: If an NFT costs 1.2 SOL, the user pays a 0.1 SOL down payment.
Remaining Payment: The user agrees to repay the remaining balance, plus interest, within a specified time frame (e.g., 14 days).
2. Asset Handling During the Mortgage Period
Frozen NFT: The purchased NFT will be frozen in the user's wallet for the duration of the mortgage.
This ensures that ownership is locked but still verifiable.
Failure to Repay:
If the user fails to pay the remaining balance on time, they will lose both the NFT and the initial down payment.
Early Repayment:
Users can repay the balance early to reduce the total interest paid.
3. Key Benefits of BNPL
Immediate Ownership Proof:
Even while frozen, the NFT can still be used to prove ownership for use in other decentralized applications (dApps).
Financial Flexibility:
Users can acquire high-value NFTs without needing the full amount upfront.
Reduced Interest for Early Repayment:
Paying early saves on interest, encouraging financial discipline and flexibility.
4. Pool Configuration and Selection
Pool Sorting and Filters:
Similar to token and NFT borrowing, users can sort pools based on criteria such as loan amount, duration, interest, or APR.
Pool Information Tooltip:
Each pool displays detailed information about interest and fees via a hoverable "i" icon.
The BNPL feature is especially useful for users who need immediate access to NFTs for integration with other dApps while managing their payment over time. It provides a balance of flexibility and accountability, making it, together with others, a powerful tool in RainFi's ecosystem.
Last updated
Was this helpful?
