Smart Emission

Smart Emission is a mechanism to balance and regulate the volume of 8LENDS tokens in circulation. Tokens are issued upon project funding requests and are always for specific purposes:

• Risk Mitigation: Reduces investor risks by ensuring tokens have specific purposes.

• Additional Income: Offers potential extra income for investors.

• Fair Supply: Guarantees a balanced circulating supply of tokens.

• USDC-Secured: Only USDC-backed tokens are issued, stabilizing the 8LENDS price exchange rate.

Example of Smart Issuance:

1. Loan Request: A company applies for a loan of 500,000 USDC at 15% APR for 12 months on the 8lends platform, passing all evaluation stages.

2. Token Issuance: The emission smart contract issues 575,000 8LENDS (covering the loan amount and interest for the entire term) and freezes them in the Treasury protocol.

3. Loan Phases: The loan is divided into 5 equal phases (STAGE), each worth 100,000 USDC with 12-month maturities.

4. Investment in Stages:

   • Stage 1: Investors and Bakers invest in this stage.

     • The company receives 100,000 USDC.

     • 115,000 8LENDS tokens (100,000 for the loan and 15,000 for interest) are transferred to the Lending pool protocol and held until the loan matures.

   • Stage 2: Investors and Bakers invest accordingly.

   • Subsequent Stages: Follow the same pattern.

5. Maturity and Withdrawal: On the loan maturity date, investors can choose to withdraw either USDC or 8LENDS from the Lending pool protocol.

This structured approach ensures that the issuance of 8LENDS tokens is controlled, purposeful, and beneficial to both investors and the overall stability of the token ecosystem.

The issuance of 8LENDS tokens is governed by a precise formula:

((Loan×12p​×d)+Loan)×BP

Where:

• Loan: Requested loan amount

• p: Annualized yield

• d: Loan term in months

• BP: Base value of 8LENDS on the date of the request

Functions of 8LENDS Tokens Issued at Smart Issuance:

1. Enhanced Returns: Investors can choose the currency in which to receive the interest or the entire loan principal, depending on the 8LENDS exchange rate.

2. Supply Balance: If investors opt for repayment in USDC, unclaimed 8LENDS tokens will be burned.

Handling Unclaimed Tokens:

• Burning: Unclaimed tokens from the Lending pool protocol can be sent to the "Burning" section, where they will be permanently removed from circulation.

• Loyalty Program: Alternatively, these tokens can be redistributed to the "Loyalty Program" section to enhance the loyalty of current and future clients.

This system ensures a controlled and beneficial distribution of 8LENDS tokens, maintaining a balance between supply and demand while offering security and flexibility to investors.

Taking into account 8lends's expansion plan to capture a 2% share of the entire European Crowdlending market, we can predict the following volume of

8LENDS tokens:

Projects for 2024-2027: 336 pcs.

Loan amount: $436,800,000

Issued 8LENDS tokens: 502.320.000

8LENDS tokens removed: 401.856.000

Circulating circulation MCLR: 100.464.000

The ratio of Basic emission (green) to Smart emission after removing unclaimed tokens is 1:10

Since some of the 8LENDS tokens may not be in demand and removed from the network, the ratio of Basic and Smart emission can be from 1:10 to 1:44 in the first 30 months of the project. All issued 8LENDS tokens will be paid for in USDC, which will create fair capitalization.