MortgageFi allows users to borrow up to 50 times the value of their initial deposit, functioning similarly to traditional finance under-collateralized mortgages. Unlike conventional crypto loans that require substantial collateral and carry the risk of liquidation during market volatility, MortgageFi’s loans are structured to avoid liquidation risks as long as regular repayments are made.

Mortgages add a powerful long term profit strategy to the DeFi space designed to facilitate mass adoption of low capital users through affordable fixed USD denominated repayments.

Borrowers can select loan terms ranging from 2 to 30 years, making fixed USD-denominated repayments that provide both stability and predictability.

By locking in the price of the borrowed asset at the time of the loan initiation, borrowers protect themselves against future price increases. For example, a user can secure one Bitcoin today with a small down-payment and continue paying it off over 30 years at the original price, potentially saving a significant amount if Bitcoin’s value appreciates over time. No application forms or credit checks are required to create a mortgage contract since MortgageFi is fully decentralised and permissionless. Unlike traditional finance mortgages that have large deposit/down payment sums, our mortgages can be taken for very low amounts with respectively low deposits. This means you can climb the digital property ladder with only a small amount of capital when it suits you.

Any time after a mortgage contract is created the borrower can fully repay their loan to take custody of their mortgage assets (cbBTC for example).

This short-term profit strategy allows borrowers to realise gains on their mortgage position to exit before the full borrowing term (up to 30 years) has been fulfilled.

What does it cost to exit my mortgage using the early repayment feature?

The cost to exit early is the full outstanding capital minus the interest cost plus a 2% fee (of the outstanding capital). Formula: Outstanding capital + 2% fee (outstanding interest is removed).

It's important to take into account the 2% fee plus any previous repayments you've made in order to calculate your true pnl (profit and loss). Your pnl is visible on the mortgages section of the dashboard for your convenience. Introduction to Mortgage product How it works Getting started In depth Dashboard

The page displays all accounts associated with the currently connected Web3 wallet. Below provides a detailed explanation of each item within the UI.

Mortgage position summary list

Connect your wallet using the header of the website in the top right hand corner

Select your Web3 wallet of choice (for example Metamask)

NOTE: this functionality is also available via the

Navigate to the Earn page and select the Enter/Exit via Uniswap button

This modal simply contains the Uniswap interface which should be pre-populated with the mortgageFi synthetic stable coin related to the selected vault (token example mf-e-usdc-cbbtc)

The token address and ticker will also be displayed beneath the modal if the site fails to populate the Uniswap dropdown fields

(i) Ensure the trading direction is setup to buy the mortgageFi synth by toggling the direction arrow if needed

(ii) Input the amount of stable coin you wish to purchase the Earn token with. The amount of Earn token will be displayed in the field below

NOTE: this functionality is also available via the Dashboard

Navigate to the Earn page and select the Enter/Exit via Uniswap button

This modal simply contains the Uniswap interface which should be pre-populated with the mortgageFi synthetic stable coin related to the selected vault (token example mf-e-usdc-cbbtc)

The token address and ticker will also be displayed beneath the modal if the site fails to populate the Uniswap dropdown fields

(i) Ensure the trading direction is setup to buy the mortgageFi synth by toggling the direction arrow if needed

(ii) Input the amount of stable coin you wish to purchase the Earn token with. The amount of Earn token will be displayed in the field below

Navigate to the

(i) Select the Earn position you wish to redeem for stable coins (example USDC-cbBTC vault) and click the Redeem Earn Tokens button

Firstly enter the redeemer contract by burning you Earn tokens. Once you’ve burned your Earn tokens to enter the redeemer you will cease to earn yield

(i) Enter the amount of Earn tokens you would like to redeem into the input box

(ii) Click the Enter queue button

The points programme has now concluded. We thank everyone who participated.

MortgageFi loyalty points were awarded to users for participation within the MortgageFi ecosystem. We implemented a dual points scheme: liquidity points that track users' Earn liquidity, and referral vouchers awarded for successful referrals to the Mortgage program.

The mortgageFi points programme ran until January 15 2025.

Our points system will tracked contributions from two parties:.

• Liquidity providers (100,000 points)

• Referrals (10,000 points)

At the end of the points season on 15 Jan 2025 a total of 110,000 points were awarded.

The projected points APR displayed on the website were based on a market cap valuation for the project token of $15M at TGE.

NOTE: this functionality is also available via the Dashboard

Navigate to the Earn page and select the Purchase with USDC button.

(ii) Input the amount of stable coin you wish to purchase the Earn token with. The amount of Earn token will be displayed in the field below

(iii) Click Approve

The transaction progress window will appear and guide you through the approval and transaction

The synthetic stable coins you purchased will appear in your wallet

If you wish to transfer your position to another address simply send the tokens to another address. Any pending yield in the outgoing address will not be transferred along with the tokens but will remain accessible in the outgoing wallet address

Connect your wallet Go to the markets page

(i) Review how much is available to Mortgage

(ii) Check the current price of the asset

This is often different to the current market price due to MortgageFi’s internal pricing mechanism

(iii)Click on the Mortgage button

Once the mortgage page opens you’ll be presented with the mortgage creation modal.

(i) Enter the amount you would like to mortgage into the input box

Ensure you have enough funds in your wallet to cover the deposit/down payment indicated directly below the input box (example shown WETH)

(ii) Select the loan term in years ranging from 1-30 years

(iii) Check you are comfortable with the monthly instalments

If regular payments are not made your loan with defaultand you will lose your deposit plus any

repayments you’ve made

(iv) Double check the deposit/downpayment requirements

(v) Check you are comfortable with the fixed interest rate you will pay ranging from 11-100% depending on the current

(vi) Check the price you are mortgaging the asset for, set by MortgageFi’s internal pricing mechanism

(vii) Check the total amount repayable if you take the loan over the full term if you do not use the early repayment option. Early repayment will lower the total interest you pay proportionately.

(viii) To create the Mortgage click Create loan.

The transaction modal will appear in conjunction with your Web3 wallet will and include an approval followed by the transfer of your deposit

Navigate to the page and identify which product card offers the asset you wish to borrow against

(i) Check that the asset price matches the current market price (unlike use the current market price to set the value for your Mortgaged asset)

(ii) Click on the CMP button to enter the CMP page

(i) Enter the amount of the asset you wish to borrow against in the input box (ii) Check the amount of synthetic yielding stable coins you will receive. This will be 98% of the USD value of the assets you are depositing (iii) Check the size of the loan amount within the Mortgage (this does not include the 2% deposit/down payment)

Now’s your chance to become a decentralized mortgage broker.

• By sharing your referral link with your friends you’ll earn 1 voucher for every $ mortgaged.

• We will proportionally distribute 10,000 points between all vouchers at the end of the season.

You can view your combined referral points and voucher across all chains and vaults on the dashboard page.

MortgageFi supports a wide range of ERC20 tokens:

• Any ERC20 token can potentially be used as a borrowable asset

• Token projects can create for their assets

Check the page to see which assets are currently available.

• Every day across both chains combined we will issue 1000 points except in the first week each day we will issue 2000 (2x rewards).

• Users who deposit stablecoins (USDC on Base or USDT on Arbitrum) will receive their share of daily points issuance.

Daily points issuance will be based on your portion of total liquidity in the system that day.

Snapshots for points will be taken once per day and user point balances will update immediately after the daily snapshot.

1. Oracle Independence:

• The system doesn't rely on external price feeds

• Resistant to oracle manipulations and flash crashes

1. Market Efficiency:

• Arbitrage opportunities ensure prices remain close to market rates

• Supply and demand forces naturally balance the ecosystem

1. Volatility Resistance:

• The system can adapt to market changes without external intervention

• Stable USD-denominated repayments protect against token price volatility

1. Aligned Incentives:

• Each participant's actions benefit the others, creating a symbiotic relationship

• This alignment encourages long-term participation and system growth

1. Enhanced Security:

• The 3-day streaming mechanism protects against flash loan attacks and other rapid exploitation attempts

1. Liquidity Provision:

• Earn depositors supply stablecoins, incentivized by high yields

• These stablecoins are used to purchase ERC20 tokens, creating liquidity for borrowers

1. Price Discovery:

• ERC20 sellers can sell tokens slightly above market rate

• The arbitrage opportunity attracts sellers, ensuring a steady supply of tokens

• Competition among sellers naturally stabilizes prices close to market rates

1. Borrowing Demand:

• Attractive loan terms drive demand from borrowers

• Borrowers' repayments in stablecoins flow back to Earn depositors

1. Yield Generation:

• Borrower repayments and fees generate yield for Earn depositors

• High yields attract more stablecoin deposits, completing the cycle

1. Early Repayment Option: Exit the loan before the first payment is due

2. 1% Early Repayment Fee: Fixed cost for early exit

3. Potential for Quick Profits: Capitalize on short-term price movements

GMX and Similar Futures Platforms:

• Employ funding rates to balance long and short positions

• Users pay or receive funding fees, which can eat into profits or exacerbate losses

• Position sizes can fluctuate based on funding rate payments

MortgageFi:

• No funding rates

• Fixed loan amounts in the borrowed asset

• Position size remains stable throughout the loan term

1. Capital Efficiency:

• Access larger amounts of crypto with minimal upfront capital

• Allows for leveraged long-term positions in preferred assets

1. Price Lock-In:

• Secure tokens at current prices for long-term holding

• Protect against future price increases in desired assets

1. Flexibility:

• Choose between long-term holding (up to 30 years) or short-term strategies

• Option for early repayment allows for dynamic strategy adjustments

1. Accessibility:

• Lower barriers to entry for crypto investing

• No credit checks or traditional financial requirements

GMX and Similar Futures Platforms:

• Operate on a zero-sum model

• For one trader to profit, another must lose

• Can lead to adversarial dynamics within the platform

MortgageFi:

• Not a zero-sum game

• Borrowers can profit from asset appreciation without direct counterparties losing

• Lenders earn yield from loan repayments

Key Features

1. Secure the asset (eg Bitcoin) at current prices for the long term

2. Make regular fixed USD payments to keep the loan from defaulting

3. Don't feel locked in, use the to lock-in profits at any stage of the loan term

4. As long as the market price of the asset appreciates at a higher rate than the rate the collective mortgage fees cost you can have piece of mind in your long term investment

How It Works

1. Loan creation:

   • Head to the page to select the vault that offers the asset you wish to mortgage, checking how much is available to borrow

   • Selecting the vault using the 'Mortgage' button takes you to the mortgage page where you can type in the amount you wish to borrow. The lower half of the mortgage modal provides the information you should consider before creating your mortgage including, deposit required, monthly repayments and so on.

Choosing Your Strategy

• Long term strategy if you:

• Believe in the long-term value of the asset

• Have a stable income for regular payments

Risk Considerations

• Long Play: Default risk over an extended period, potential opportunity cost

• Short Play: Market volatility risk, potential to lose deposit if you default on your loan, timing challenges

Both strategies have their place in MortgageFi, offering users the flexibility to approach crypto asset acquisition and trading in ways that best suit their goals and risk tolerance. Users are encouraged to carefully consider their financial situation, market knowledge, and risk appetite when choosing between these strategies.

CMPs are comparable to CDPs (collateralised debt positions) in that the position is opened with collateral which is borrowed against. There is one key advantage that CMPs offer in comparison. Unlike CDPs, CMPs cannot be liquidated upon market downturns. Since you receive a mortgage equal in value to your deposit the only way to be liquidated is to allow your mortgage to default by not making regular payments into it. Another key feature to note is that mortgaged assets created as part of a CMP are valued at current market valuations instead of being subject to the internal valuation pricing model. Opening a CMP by depositing your asset (cbBTC for example) allows you to release equity via our yielding soft pegged stablecoin whilst keeping upwards pricing exposure through our Mortgage product.

It also creates a unique hedging opportunity to preserve your wealth in the case of a bear market without sacrificing the upside of a continued bull market.

CMPs with MortgageFi combines our Mortgage and Earn products into one. MortgageFi allows our users the ability to open a CMP with their token (eg cbBTC) in exchange for a mortgage of the same amount plus the 98% the amount in USD terms in MortgageFi stables which automatically accrue yield. MortgageFi stables can be converted to stable coins at the pegged rate of our liquidity pair on Uniswap which is provided within our UI on the Earn page.

Illustration example

Bob opens a CMP position using his cbBTC when the Bitcoin market value is $100,000 by depositing 1 cbBTC using the page. He receives:

1. $98,000 in interest yielding soft-pegged stables coins that variable interest (typically ranging 15%-20% APY)

2. A position for 0.98 cbBTC that includes his refundable deposit (that secures the mortgage) for 0.02 cbBTC. The mortgage position has fixed APR interest charge of 18%.

Bob now has the option to convert any portion of his yielding stables into USDC via the Uniswap modal on the or just wait for the yield to accrue. Accrued interest is visible in the .

He also has the choice of whether to maintain his mortgage position in order to keep exposure to any upwards price appreciation of his Bitcoin position. As long as he keeps up the repayments on the mortgage the full 0.98 cbBTC will remain mortgaged to him. His repayments if paid monthly will work out to be $1777.78. At any time Bob can choose to early repay his mortgage to release the full 0.98 cbBTC back to his wallet along with the 0.02 cbBTC deposit to return the 1 cbBTC that he started with.

Assets (such as cbBTC) available to mortgage in our vaults are not priced at current market valuations but instead are valued at the average price the protocol acquired them for using liquidity from users. Each time the vault acquires assets they enter the pool and influence the average price per unit of the entire pool based on their size proportional to the existing pool size.

Borrowers begin by selecting the ERC20 token they wish to acquire, such as Bitcoin or Ethereum. They then make a down payment as low as 2% of the total asset value they intend to borrow. The borrower receives the full amount of the borrowed asset, with the price locked in at the time of the loan’s initiation.

Repayments are made in fixed USD amounts over the chosen loan term, providing a predictable payment schedule. We strongly advise users repay their loans once a month to avoid missing a payment.

Payments are due a maximum of 45 days from the last time the outstanding balance was settled. Each time a user settles the outstanding amount showing in their mortgage dashboard a 45 day timer resets. The amount due gradually increases from $0 to the maximum instalment amount for 45 days. Mortgaged capital is held on behalf of the user by the smart contract and is released to borrowers upon finalizing (fully repaying) their loan.

Borrowers also have the flexibility to repay their loan early using the early repayment feature at any time by paying a 2% early repayment fee, allowing them to capitalize on market movements or personal financial changes. This early repayment fee is charged as 2%* of the outstanding capital.

Each loan is represented by a unique NFT, which serves as proof of the loan and can be transferred between wallets or traded on secondary markets. This feature adds liquidity to the loan obligations and offers borrowers additional flexibility in managing their financial commitments. *Early repayment fees have risen from 1-2% since the introduction of Refinancing vaults in May 2025. If your mortgage was created prior to this the fee will remain at 1%.

For liquidity providers, MortgageFi offers an attractive avenue to earn competitive yields. By supplying stablecoins to the platform’s earning vaults, liquidity providers indirectly finance the mortgages, benefiting from borrower repayments and early repayment fees. Yields are automatically accrued through the and displayed on the users .

Typical yields are expected to offer between 10-18% APR. During peak market conditions, liquidity providers can expect yields up to 25%+ APR, with the potential to earn even more in high volume periods.

Importantly, liquidity providers face no impermanent loss, as their deposits are in stablecoins, and the rewards are dollar-denominated. The yield pools are designed not to dilute as they grow (as growing enables more borrowing), ensuring that returns remain competitive even as more liquidity enters the system.

When you wish to guarantee your Earn position will exchange 1:1 for stablecoins such as USDC or USDT and are will willing to wait then the redeemer tool in the Dashboard might be right for you.

All repayments and early repayment fees (minus 10% protocol fees) flow directly into the redeemer to service users who have deposited into it to exit. It's important to remember that whilst your Earn tokens are in the redeemer they will not accrue yield. This is by design to prevent all holders from entering the redeemer whilst giving priority to those who need to exit. All users who have deposited into the redeemer have a weighted position based on their deposit size. This means that everyone receives a proportion of the funds that enter. To clarify there is not a queueing system, instead all users are treated equally in terms of priority. Position size is the only factor that determines a users redemption speed in USD terms. Here's a digram that shows how the redeemer fits into the mortgage vault ecosystem:

Audit (booked for Q1 2026)

To open a CMP, head over to the page or navigate from the page. Deposit your ERC20 token (eg. ) and you'll receive two MortgageFi products in return: 1. for the same amount you've deposited.

1. stables based on the current market value of your token.

All the features of Earn and Mortgages will be available to you immediately. You could decide to take profit on your Mortgage using the or release equity from your by trading your MortgageFi stables for stablecoins in the Uniswap pool available on the dashboard.

Liquidity providers contribute stablecoins to MortgageFi’s earning vaults, which are then used to purchase inventory for users who create mortgage contracts. Whilst holding our Earn tokens which are soft-pegged to USD you will earn yield. As Mortgage borrowers make their repayments, these funds flow back to the liquidity providers, accruing yield.

Early repayment fees from borrowers who choose to settle their loans ahead of schedule provide an additional boost to yields. How much yield will you earn? The amount of yield you will earn is determined by interest rates at which mortgage users have borrowed at which is determined by the pools utilisation at the time of borrowing plus all early repayment fees. Both repayments and ERF are subject to 10% protocol fees to help fund protocol developments. In a healthy borrowing environment where borrowers are maintaining their loans without defaulting you can expect interest rates to range from at least 11-17%. Exiting your Earn position Liquidity providers can exit the system at any time through the associated uniswap pool (using the soft-pegged USD rate available) or they can choose to use the redeemer in the Earn section of the Dashboard to guarantee a 1:1 trade to USD denominated stablecoins such as USDC and Tether (USDT). The uniswap pool peg is sustained by users who purchase the Earn token with stablecoins when their value is below peg. Here's a diagram that shows how Earn users fit into the Mortgage vault ecosystem:

Compound your yield

Remember to compound your yield by pressing the compound button in your to ensure maximum yield benefit whilst your position is active.

Each loan is represented by a unique NFT, which:

• Acts as proof of your loan

• Can be transferred to other wallets

• Allows for potential secondary market trading of loan obligations

You'll receive your Loan NFT automatically when you take out a loan.

Network: Base Contract name: MortgagePool Vault: USDC-cbBTC

Address: 0xE93131620945A1273b48F57f453983d270b62DC7

Vault: USDC-WETH

Address: 0xCD89aBE6ec3eeDeF07713e1B89d698c0C421dC8f

Network: Arbitrum Contract name: MortgagePool

Vault: USDT-WBTC

Address: 0x2F5Aac46575f68fe600e99096CA38301a4520a91

Q1: What is MortgageFi? A: MortgageFi is a decentralized finance (DeFi) protocol that offers under-collateralized loans for digital assets, high-yield earning opportunities, and unique benefits for token projects.

Q2: How is MortgageFi different from other DeFi lending platforms? A: MortgageFi stands out by offering loans with as little as 2% collateral, fixed USD repayments, loan terms up to 30 years, and the ability to borrow any supported ERC20 token.

Q3: Is there a MortgageFi token? A: Not at present.

Q4: How much can I mortgage? A: You can borrow up to 50 times the value of your collateral, depending on the specific terms of the vault you're borrowing from.

Q5: What cryptocurrencies can I borrow? A: MortgageFi supports a wide range of ERC20 tokens. Check the "Supported Tokens" list in the app for the current offerings.

Q6: How long are the loan terms? A: Loan terms can range from 1 to 30 years, offering flexibility to suit your long-term investment strategy. Q7: How many days do I have to repay my mortgage? A: Payments are due within 45 days from when you last settled the outstanding amount. Each time you pay the outstanding amount shown in your dashboard a 45 day timer restarts. The amount you are due to pay increases linearly throughout the 45 day period.

Q8: What happens if I can't make a payment? A: If you miss a payment, your loan will be considered in default, and your collateral may be liquidated to repay the loan.

Q9: How much can I earn by providing liquidity? A: Liquidity providers can earn up to 100% APY, depending on market conditions and borrowing demand.

Q10: How does the rebasing mechanism work for earnings? A: The rebasing mechanism automatically increases the number of tokens you hold in the earning vault, reflecting your earned interest without the need for manual claims.

Q11: Can I withdraw my funds at any time? A: Yes, you can withdraw your deposited funds and earnings at any time, subject to available liquidity in the vault.

Q12: Has MortgageFi been audited? A: Yes. You can find the latest audit reports in the Audits section of our documentation. MortgageFi employs multiple security measures and failsafes through its smart contract design.

Q13: Is MortgageFi dependent on oracles? A: No, MortgageFi does not rely on external price oracles, which reduces potential points of failure and manipulation.

Q14: Which blockchains does MortgageFi support? A: MortgageFi is launching on Ethereum and Base, with plans to expand to other EVM-compatible chains in the future.

Q15: Can I use MortgageFi with a hardware wallet? A: Yes, MortgageFi supports various wallet connections, including hardware wallets for enhanced security.

Q16: How are gas fees handled? A: Users are responsible for paying gas fees for their transactions. The exact cost will depend on the network congestion and the complexity of the transaction.

Q17: How can token projects benefit from MortgageFi? A: Token projects can create dedicated vaults on MortgageFi, which can act as a "token sink," enhancing token utility and potentially managing circulating supply.

Q18: How can a token project integrate with MortgageFi? A: Token projects interested in integration should reach out to the MortgageFi team through our official channels for discussion and potential partnership. Q19: Is there a minimum size mortgage and deposit I can take in the cbBTC vault? A: 1000 Satoshis is the minimum sized mortgage you can take which will require a deposit of 2000 Satoshis. If you're wondering why the deposit is larger than the loan itself, the system needs to deter users from spamming new mortgage contracts then defaulting on them with no financial consequence. The deposit creates an incentive not to do this since they will lose the value of the deposit upon defaulting their loan.

Whenever a user fails to make payments within the time given for their current installment it allows any other user to trigger a default of their contract.

Whilst users are encouraged to make monthly payments, defaulting only becomes available after 45 days since the last outstanding repayment. Users can in theory choose to pay on day 44 of their payment window, however this is not recommended.

Defaulting provides an important economic design that increases yield for Earn product users. When this happens all funds tied into the mortgage contract are returned to the protocol.

IMPORTANT NOTE: There is no way to refund any of the borrower's funds at this stage, the borrower loses all funds added to the contract up to the point of defaulting.

Earning Vaults enable liquidity providers to earn high yields. Key features include:

• Deposit stablecoins to provide liquidity and receive mortgageFi synthetic stable coins in return

• Earn up to ~25% APY from borrower repayments plus extra yield through early repayment fees

To start earning, visit the page and choose a vault (as shown below) through the Earn option. On the page you will have the option to use the protocol swap modal (deposit tab as shown below) which is fixed at 1:1 or you buy directly from Uniswap where prices may fluctuate slightly (presenting possible arbitrage) .

Transferability of earn position between wallets

Earn positions are established by users holding mortgageFi synthetic stable coins which will be received at a rate of 1:1 compared to the number of units you deposit.

If you deposit 100 USDC you will receive 100 mortgageFi stables.

Whichever wallet holds mortgageFi stables will earn pending rewards so transferring mortgageFi synthetic stables from one wallet to another also transfers the earning potential.

Tutorials

We have successful audits with reputable firms as listed below: Decurity Vault 2.0 (Refinance, Mortgage, Earn) https://github.com/Decurity/audits/blob/master/MortgageFi/mortgagefi-update-audit-report-2025-1.1.pdf Vault 1.0 (Mortgage, EArn)

Decurity

https://github.com/Decurity/audits/tree/master/MortgageFi

Hashlock

https://hashlock.com/audits/mortgagefi

MortgageFi does not have a governance model or token at this stage.

Supercharge your ERC20 token's utility and create a powerful token sink with MortgageFi integration.

By partnering with us, your project can:

• Enhance tokenomics through long-term token lockups

• Generate yield on provided liquidity

• Boost community engagement with innovative DeFi features

• Create new demand drivers for your token

MortgageFi offers a unique opportunity to position your token at the forefront of DeFi innovation. Our first-come, first-served integration process, prioritized by seed liquidity commitment, ensures that proactive projects can quickly leverage our platform's benefits.

Ready to take your token to the next level?

For a detailed guide on the integration process, benefits, and next steps, see our comprehensive section on "Integrating Your ERC20 Token with MortgageFi".

For years in the nascent space of Decentralised Finance the staple market has been comprised of over-collateralised lending. Due to the lack of trust and anonymity of users, borrowers need to lay down more capital than they can borrow to ensure that borrowed funds cannot be extracted from the system without consequence.

Co-founder : "For years I'd been racking my brain attempting to solve the under-collateralised lending dilemma when it finally hit me one night, in short; we can lend the funds without releasing them" After presenting the concept to fellow co-founder the seed was planted allowing the work to begin in formulating the protocol architecture and smart contracts that would facilitate a safe and stable management of a decentralised trad-fi mortgage style product. Snape's original vision would be to offer on-chain mortgages that came with all the benefits of trad-fi mortgages, except for digital assets. Where in trad-fi there is the promise of full ownership of a bricks and mortar home upon completion of the mortgage, now the younger generations could aspire to own large sums of digital property through a crypto mortgage.

Without prejudice anyone with access to the blockchain would be able to own a mortgage:

Mortgage vaults are the heart of MortgageFi's lending mechanism. They allow you to:

• Borrow any supported ERC20 token with as little as 2% collateral

• Lock in current token prices for long-term acquisition

• Choose loan terms from 1 to 30 years

• Make fixed repayments in USD-pegged stablecoins

To start borrowing, connect your wallet and navigate to the "Mortgage" section on the MortgageFi interface.

The cost of borrowing increases as the pool of borrowable assets becomes more utilized. The diagram below illustrates how the interest rate is linked to the pool utilization:

For a detailed understanding of the mechanics behind the vaults please see the diagram below:

1. Application:

• Submit an integration request to the MortgageFi team

• Provide details about your token, its use case, and current market metrics

1. Evaluation:

• MortgageFi reviews applications on a first-come, first-served basis

• Priority is given to projects willing to provide significant seed liquidity

1. Seed Liquidity:

• Projects are required to deposit stablecoin liquidity to the Earn side

• This seed liquidity helps kickstart the vault and demonstrates commitment

1. Vault Development:

• MortgageFi team develops a custom vault for your token

• Collaboration on vault parameters (collateral ratios, loan terms, etc.)

1. Testing and Deployment:

• Rigorous testing of the new vault

• Deployment to MortgageFi's supported chains

Learn about MortgageFi’s core components in more depth.

MortgageFi operates as a unique, interconnected ecosystem where three key participants – Earn depositors, Borrowers, and ERC20 sellers – work together to create a balanced and efficient market without relying on external oracles.* This self-balancing mechanism ensures stability, resilience against market volatility, and attractive opportunities for all participants. *Oracles are only used for the Financing product to ensure their Mortgages and Earn positions are based on the current market value at the time they finance. This does not affect the internal pricing of mortgageable assets.

Three Pillars

1. Earn Depositors:

• Provide stablecoins to the system

• These stablecoins are used exclusively to purchase ERC20 tokens from sellers

1. ERC20 Sellers:

• Sell their ERC20 tokens to the protocol

• Receive stablecoins from the Earn depositors' pool

1. Borrowers:

• Borrow ERC20 tokens with minimal collateral

• Make repayments in stablecoins, which flow to Earn depositors

1. Liquidity Commitment:

• The amount of seed liquidity provided can affect integration priority

• Consider the potential returns on this liquidity through MortgageFi's yield generation

1. Community Readiness:

• Assess your community's interest in leveraging MortgageFi's features

• Prepare educational materials about the integration benefits and risks

1. Tokenomics Impact:

• Evaluate how MortgageFi integration aligns with your overall tokenomics strategy

• Consider the potential effects on token supply and demand

Imagine ETH is trading at $2000 on the open market:

1. An ERC20 seller offers ETH to MortgageFi at $2020

2. MortgageFi purchases this ETH using stablecoins from Earn depositors

3. A borrower, seeing this as attractive, takes a loan for this ETH

4. The borrower's repayments go to Earn depositors, who supplied the initial stablecoins

5. If ETH price rises, more borrowers are attracted; if it falls, more sellers are incentivized

6. The 3-day streaming mechanism ensures that large deposits or sales don't disrupt this balance

By creating this virtuous cycle with built-in security measures, MortgageFi maintains a stable, efficient, and oracle-free ecosystem that benefits all participants while remaining resilient to market fluctuations and potential exploits.

1. Enhanced Token Utility:

• Provides a new use case for your token within the DeFi ecosystem

• Potential to attract new users and increase token demand

1. Yield Generation on Seed Liquidity:

• Earn yield on the stablecoin liquidity provided to seed the vault

• Yield is generated from loan repayments and fees in the system

1. Token Sink Mechanism:

• Creates long-term token lockups, potentially reducing circulating supply

• Can positively impact token value and market dynamics

1. Community Engagement:

• Offers your community new ways to interact with and hold your token

• Encourages long-term commitment from token holders

1. DeFi Ecosystem Participation:

• Integrates your project into the broader DeFi landscape

• Potential for increased visibility and liquidity

Under-collateralized loans are the cornerstone of MortgageFi's innovative approach to DeFi lending. This concept allows borrowers to access loans with collateral requirements significantly lower than traditional DeFi platforms, opening up new possibilities for capital efficiency and accessibility.

1. Gradual Fund Integration:

• When users deposit in Earn or sell ERC20s to MortgageFi, the contracts stream the funds over 3 days

• This prevents sudden large influxes of funds that could potentially exploit the system

• Implemented through the doUpdate function in the mortgagefipool contract

1. No Direct Lending of Deposited Stablecoins:

• Stablecoins from Earn users are not available for direct lending

• They are used exclusively to purchase ERC20s from sellers, maintaining system integrity

Under-collateralized loans are loans that enable the borrower access for more funds than they deposit to create the loan contract. In our case we offer 50x leverage without risk of liquidation. In the context of MortgageFi:

• Borrowers can secure loans by depositing as little as 2% of the borrowed amount as collateral.

• This is in stark contrast to most DeFi platforms that require over-collateralization (often 150% or more).

Alice wants to acquire 10 ETH, currently priced at $2,000 each:

• In traditional DeFi, she might need $30,000 worth of collateral for a $20,000 loan.

• With MortgageFi, she could potentially borrow 10 ETH with just $400 (2% of $20,000) as collateral.

• She makes fixed USD repayments over her chosen term, eventually owning 10 ETH outright.

Understanding under-collateralized loans is crucial for users to fully leverage MortgageFi's unique offerings. This innovative approach to lending in the DeFi space opens up new possibilities for long-term crypto investment strategies and increased capital efficiency.

Meet Alice and Bob, both wanting to increase their ETH holdings from 1 ETH.

Alice uses a Traditional DeFi Leverage Platform:

• Alice deposits her 1 ETH (worth $2,000) as collateral

• She opens a 3x leveraged long position, effectively controlling 3 ETH

• Borrowers: Understand loan terms, maintain repayment discipline

• Liquidity Providers: Monitor system health, participate in default resolutions when necessary

• All Users: Conduct due diligence, understand the protocol's mechanisms

1. Under-collateralized Loan Management:

• Strict repayment schedules to mitigate default risk

• Clear conditions for loan default (failing to keep up repayments)

• Collateral and previous payments cover potential losses keeping the protocol solvent

1. No Traditional Liquidation Risk:

• Unlike typical DeFi loans, MortgageFi loans do not carry sudden liquidation risk

• Loans enter only if repayment terms are not met

1. Oracle-Free Price Discovery:

• Relies on market-driven pricing through arbitrage

• Eliminates risks associated with oracle failures or manipulations

1. Gradual Fund Integration:

• 3-day streaming mechanism for new deposits and token sales

• Prevents large-scale manipulation and flash loan attacks

1. User-Triggered Default Resolution:

• Community-driven approach to handling defaulted loans

• Incentivizes users to maintain system health

• Efficiently returns funds to the Earn pool

1. Diversification of Assets:

• Support for multiple ERC20 tokens spreads risk across various assets

1. Fixed USD Repayments:

• Protects the system from volatility in borrowed asset prices

GMX and Similar Futures Platforms:

• Designed for shorter-term trading strategies

• Higher turnover and more active management required

• Profits/losses realized more frequently

GMX and Similar Futures Platforms:

• Higher risk of liquidation due to market volatility

• Potential for significant losses in short periods

• Requires constant monitoring of positions

MortgageFi:

• Lower risk of losing position due to market fluctuations

• Main risk is defaulting on USD repayments

• More suitable for "set and forget" strategies

MortgageFi employs innovative strategies to manage and mitigate risks in decentralized finance lending and borrowing, offering a unique approach that sets it apart from traditional DeFi protocols.

1. Vault Creation:

• Token projects can create a dedicated MortgageFi vault for their token

• This vault allows users to borrow against the project's token

1. Long-Term Borrowing:

• Community members can take out loans of up to 30 years using the project token

• Borrowed tokens are effectively removed from circulation for the loan duration

1. Gradual Token Lock-up:

• As more community members take loans, a larger portion of the token supply becomes locked

• This process can continue over time, potentially for decades

GMX and Similar Futures Platforms:

• Costs can be unpredictable due to varying funding rates

• Potential for unexpected fees during high volatility periods

MortgageFi:

• Borrower Default Risk:

• Mitigated by: Collateral retention, repayment history, and user-triggered default resolutions

• Benefit: Defaulted loan funds return to Earn users, incentivizing active participation

• Market Volatility Risk:

• Mitigated by: USD-denominated repayments and market-driven pricing

• Smart Contract Risk:

• To be mitigated by: Future audits planned post-launch, funded by protocol income

• Open-source code allows for community review

The rebasing mechanism is a key feature of MortgageFi's Earn Vaults, designed to provide a seamless and efficient way for liquidity providers to accumulate yields.

How It Works

1. Automatic Yield Accrual:

• As borrowers make repayments and fees are collected, the total value in the vault increases.

• Instead of distributing these gains manually, the number of tokens each depositor holds is semi-automatically increased.

• In order to claim pending rebasing rewards use the compound in the Earn section of the .

1. Token Quantity Adjustment:

• The system periodically "rebases" by increasing the number of tokens in each depositor's pending balance.

• The total value of a depositor's holdings increases over time.

• Additional post-launch security audits planned, to be funded by protocol income

• Community-driven governance for risk parameter adjustments

• Continuous monitoring and improvement of risk models

1. • MortgageFi was designed to offer digital property loans that compare with trad-fi mortgages by allowing anyone to setup a mortgage for assets where they believe the long term value is attractive enough to own into the future.

MortgageFi is designed to operate seamlessly across multiple blockchain networks, expanding accessibility and providing users with greater flexibility.

Current Supported Chains

• Arbitrum One

• Base

• User-triggered default resolutions encourage community engagement

• Earn users are incentivized to monitor loan health and trigger defaults when necessary

• This approach aligns individual user interests with overall system health

What is a Token Sink?

A token sink is a mechanism that removes tokens from circulation for extended periods, potentially increasing scarcity and supporting token value. In MortgageFi, this is achieved through long-term loans collateralized by project tokens.

How It Works

1. Vault Creation:

• Token projects can create a dedicated MortgageFi vault for their token

• This vault allows users to borrow against the project's token

1. Long-Term Borrowing:

• Community members can take out loans of up to 30 years using the project token

• Borrowed tokens are effectively removed from circulation for the loan duration

1. Gradual Token Lock-up:

• As more community members take loans, a larger portion of the token supply becomes locked

• This process can continue over time, potentially for decades

Benefits for Token Projects

1. Supply Management:

• Reduction in circulating supply without token burns

• Potential positive impact on token value due to increased scarcity

1. Community Engagement:

• Provides a new utility for the token within the project's ecosystem

• Encourages long-term holding and community participation

1. Liquidity Attraction:

• MortgageFi vaults can attract stablecoin liquidity to the project's ecosystem

• Creates a new DeFi use case for the project token

1. Tokenomics Enhancement:

• Adds a dynamic element to the project's tokenomics

• Can be integrated into the project's long-term economic strategy

Benefits for Token Holders

1. Holdings Opportunity:

• Potential to increase token position over time

1. Long-Term Commitment Option:

• Way to demonstrate long-term belief in the project

• Align personal incentives with the project's success

1. Flexible Exit Strategy:

• Option for early loan repayment if circumstances change

Considerations for Projects

1. Vault Parameters:

• Projects can work with MortgageFi to optimize vault parameters for their token

• Factors include collateral ratios, loan terms, and interest rates

1. Community Education:

• Important to educate the community about the benefits and risks of using the MortgageFi vault

1. Integration Strategy:

• Consider how the MortgageFi vault fits into overall project strategy and tokenomics

Real-World Impact

The Token Sink Mechanism can have a significant impact on a project's ecosystem:

• Example: If 10% of a token's supply is locked in MortgageFi loans for an average of 10 years, it could substantially affect the token's circulating supply and market dynamics.

MortgageFi's Token Sink Mechanism offers a unique way for ERC20 projects to enhance their tokenomics, engage their community, and participate in the broader DeFi ecosystem. By providing this feature, MortgageFi positions itself as a valuable partner for token projects looking to innovate and grow their ecosystems.

CMPs offer an innovate hedging strategy to protect the current USD value of your Bitcoin in the the case of a bear market whilst leaving you exposed to the upside of a continued bull market.

When you open a CMP you receive a Bitcoin mortgage to match your financing amount plus 98% of the current USD value of your Bitcoin in yield bearing Earn tokens. In the case of a bear market you can simply allow your mortgage to default and retain your earn position which will continue to earn yield until you decide to convert back to stables in the soft-pegged uniswap v4 liquidity pool. In the case of a continued bull market you can keep the mortgage from defaulting by making regular payments funded by the yield earned in your earn position. This means that the Bitcoin held in your mortgage can continue to benefit from the upside price appreciation the bull market delivers. What happens if Bitcoin just keeps going up and I want to hedge at Bitcoins higher USD value? In this scenario you can use the early repayment feature to release the Bitcoin in your mortgage, then open a new CMP at the new market value of Bitcoin, freezing it's value within the new Earn position you'll receive.

MortgageFi employs innovative strategies to manage and mitigate risks in decentralized finance lending and borrowing, offering a unique approach that sets it apart from traditional DeFi protocols.

Key Features

1. Early Repayment Option: Exit the loan before the first payment is due

2. Use the PnL indicator on the dashboard to identify when your position is in profit

3. Escape the fear of margin calls and liquidation risk as a result of market price volatility even with the high leverage we offer (up to 50x)

How It Works

1. Create a loan:

   • When you think the asset is undervalued by 2% or more create your loan, securing the price at that moment within your mortgage. Be sure to check the price at which MortgageFi is lending you the asset which is displayed when you create the mortgage contract.

   • Whilst we offer loans with 2-50x leverage we recommend taking the full 50x leverage for the short-term strategy since it offers the most potential for maximum gains.

Benefits:

• Opportunity to profit from short-term market movements

• Up to 50x leverage with the risk of liquidation as long as users keep up their repayments

• Lower risk compared to long-term commitments

Risks:

• Failure to pay before the first instalment is due (45 days) will result in the loan defaulting

Ideal For:

• Experienced traders comfortable with flash loans

• Users anticipating significant short-term price movements

• Those looking to leverage MortgageFi for trading strategies

1. Reach out to the MortgageFi team through official channels

2. Prepare a proposal outlining your project and desired integration

3. Be ready to discuss seed liquidity amounts and potential vault parameters

4. Engage your community to gauge interest and gather feedback

Integrating with MortgageFi offers ERC20 token projects a powerful way to enhance their ecosystem, generate yield on liquidity, and provide new opportunities for their community. By leveraging MortgageFi's innovative features, projects can position themselves at the forefront of DeFi innovation while potentially strengthening their token's market position.