Protocol
Financing model
There is no time-based interest anywhere in the network. Borrowers pay fixed one-time fees, and capital earns from real outcomes instead of the passage of time.
Zero-interest credit line
The credit line follows the peer-to-pool model pioneered by Liquity. A borrower locks collateral, draws stablecoins, and pays everything up front. Nothing accrues afterwards: the amount owed remains fixed until repayment.
Origination fee
Paid once when funds are drawn, for example 0.5% of the amount. This replaces the interest rate entirely.
Redemption fee
A fixed fee when the position is closed and the collateral is redeemed. Together with origination, it is the full cost of borrowing.
Stability pool returns
Liquidity providers earn discounted collateral from liquidations and protocol token rewards instead of interest.
Stability pool
The pool plays two roles. It is the source of every draw, and it is the buyer of last resort when a position is liquidated. Because returns come from liquidation gains and token rewards rather than a rate, providers earn from real events in the network instead of from time.
Profit and loss sharing
For financing tied to a business or a productive asset, SAFIX replaces the creditor relationship with an investment partnership. The financed party and the pool agree on a profit split before any capital moves.
Capital partnership
The pool provides the capital and the financed party operates it with their business or their tokenized assets. Profit is split at the agreed ratio, for example 60/40. If the venture loses money without misconduct or negligence, the loss falls on the capital, not the operator.
Joint venture
Pool funds and the pledged asset are deployed together in a single project. Income is distributed according to the agreed profit-sharing ratio, and both sides carry the outcome of the venture.
Why this model
- 01Borrowing cost is known in full on day one and never grows.
- 02Provider returns come from real events in the network, liquidation gains and shared profits, not from the passage of time.
- 03Capital and risk stay aligned: whoever funds a venture carries its genuine losses.