Credit Delegation

Credit delegation can be understood as an agreement where the supplier knows the seeker and lends funds directly to the known borrower of choice. Therefore, we simply call credit delegation as ‘Know Your Borrower’

Any two parties assessing the protocol can enter into a trusted agreement in which the depositor’s capital can be borrowed by the counterparty. Interest rates, loan terms, and covenants are baked into a delegation agreement and stored on-chain, providing an immutable point of reference for all parties involved.