> For the complete documentation index, see [llms.txt](https://8lends.gitbook.io/8lends.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://8lends.gitbook.io/8lends.io/group-1/intro.md).

# Intro

## What is 8lends?

8lends is a **decentralised, under-collateralised crowd-lending platform** that fuses traditional credit know-how with on-chain transparency.

As a subsidiary of **Maclear**—a Swiss Web2 crowd-lending pioneer—8lends inherits decades of underwriting and due-diligence expertise while leveraging blockchain rails for efficiency, auditability, and global reach.

## Why 8lends is Different

| **Challenge seen in earlier protocols: Goldfinch, Maple, TrueFi, Clearpool, Centrifuge and Atlendis** | **8lends’ solution**                                                                                                                                   |
| ----------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **Crowd-sourced validation failed -** anonymous voters lacked hard data.                              | **Professional underwriting.** All KYB and due diligence are handled in-house by Maclear’s credit desk — no anonymous backers or validators.           |
| **Backer stages under-funded -** capital formation bottleneck.                                        | **Subordination Priority (Proof-of-Priority).** Lenders self-select risk/return (High, Middle, Low) within a single pool by paying or farming $8lends. |
| **Illiquid loan tokens** discouraged mainstream lenders.                                              | **Liquid CT-tokens.** Lenders receive transferable Confirmation Tokens, which can be traded peer-to-peer for an early exit.                            |

## How the Platform Works

1. **Transparent, community-driven funding**\
   Vetted borrowers — from real-world sectors like agriculture, retail, logistics, and Web3 ventures — list financing needs. The global user base supplies capital directly; 8lends never lends from its own balance sheet.<br>
2. **Rigorous risk management**\
   Borrowers undergo a thorough verification process to assess financial health and credibility. This includes evaluating financial statements, credit history, operational viability, and collateral value.<br>
3. **Blockchain-native infrastructure**\
   Loan issuance, repayments, penalties, and reward calculations are executed on-chain — providing immutable audit trails and gas-efficient operations.<br>
4. **Subordination Priority in action**\
   In case of default, losses follow a waterfall structure: Low → Middle → High — mirroring traditional capital-stack logic.

<table data-header-hidden><thead><tr><th align="center" valign="middle"></th><th align="center"></th><th align="center"></th><th align="center"></th></tr></thead><tbody><tr><td align="center" valign="middle"><strong>Priority</strong></td><td align="center"><strong>Risk</strong></td><td align="center"><strong>Yield</strong></td><td align="center"><strong>$8LENDS</strong> <strong>Flow</strong></td></tr><tr><td align="center" valign="middle"><strong>High</strong></td><td align="center">Lowest</td><td align="center">Lowest</td><td align="center">Pay $8lends up-front to upgrade</td></tr><tr><td align="center" valign="middle"><strong>Middle</strong></td><td align="center">Balanced</td><td align="center">Standard</td><td align="center">—</td></tr><tr><td align="center" valign="middle"><strong>Low</strong></td><td align="center">Highest</td><td align="center">Highest</td><td align="center">Farm $8LENDS rewards</td></tr></tbody></table>

5. **Liquid CT-Tokens**\
   Confirmation Tokens representing a lender’s position (principal + interest + penalties + collateral proceeds) are minted with each stage and can be traded peer-to-peer within the platform — providing liquidity well before maturity.<br>
6. **$8LENDS utility token**\
   The native $8lends token powers platform fees, priority upgrade auctions, and cashback incentives (Proof-of-Loan, Early Adopter, Reputation) — aligning users and projects around a shared ecosystem of growth and sustainability.<br>

By linking fees, rewards, and risk-tier selection to $8LENDS, the token aligns incentives across borrowers, lenders, analysts, and the platform itself — creating a sustainable, growth-oriented lending marketplace.

## Background&#x20;

Traditional crowdlending relies heavily on banks and intermediaries — driving up fees, slowing processing, and excluding borrowers with non-standard credit profiles. Centralized risk assessments are often opaque and biased, leaving millions — especially in underbanked regions — without access to affordable capital.\
\
8lends flips this model by moving underwriting, funding, and repayments on-chain. Our decentralized platform cuts out middlemen, reduces transaction costs by up to 20–30%, and delivers transparent, bias-free credit checks. Modular tokenomics — anchored by the native $8lends token — align incentives across borrowers, lenders, and analysts, while tradable CT-Tokens ensure liquidity.\
\
With faster, cheaper transactions and inclusive risk assessment, 8lends unlocks capital for small businesses and underserved individuals, creating a more efficient, equitable crowdlending ecosystem.

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