An explanation of keywords that appear in the ecosystem
Asset Originator (AO) - a business that aggregates assets. It is a business that consistently has a flow of incoming commercial finance assets, such as an invoice factoring provider.
Liquidity Provider (LP) - Defactor's liquidity providers provide the capital that asset originators use to finance assets.
Real World Asset (RWA) - any traditional asset that can be tokenised, such as an invoice, receivables or inventory eg. invoice/stock/inventory.
Asset NFT - a tokenised representation of a real-world asset. Asset NFTs within the Defactor ecosystem are used to describe an asset as collateral
$FACTR - Defactor's native token, used by network participants to unlock the platform as well as for governance purposes.
Covenants - pre-agreed set of conditions ensuring better risk management and transparency.
TradFi - Traditional finance, sources of financing obtained from the banking system and/or capital markets.
DeFi - Decentralised finance, offers financial tools and instruments without the need of an intermediary or a bank as seen in TradFi, enabled by smart contracts and blockchain technology.