The POP Overview
The POP is the Pool Onboarding Proposal. This Proposal is the foundation and first document that any organization or individual seeking to finance RWAs through the Centrifuge protocol should complete.
It serves as a point of introduction and interaction mechanism between the POP and the Centrifuge community. It will enable discussions to begin quickly and publicly through the Centrifuge Forum. It also allows for the governance process to begin and enables the broader DeFi ecosystem to understand a specific POP’s potential value to the DeFi ecosystem.
The POP Process and the POP Process (Stage 1) should be consulted in advance of submitting a POP to ensure appropriate understanding of why this process exists and how it works.
Before downloading the POP template, please review the POP Criteria below. The POP Criteria is absolutely critical to understand before submitting your POP. POP Criteria Score and determines if a POP will be supported by the community in continuing the process.
Please download this POP Template:
- Provide complete answers to all fields
- Submit it through the Pool Onboarding Proposal Category of the Forum
To join the Centrifuge community and submit a POP, please create a Centrifuge Forum account.
Let’s begin.
The POP Criteria
Before submitting a POP please review the POP Criteria below. All information submitted via a POP will be reviewed and verified by multiple parties through the POP Process.
- Business Years in Operation: 2 years+
- Off-Chain Institutional Investors: Yes/No (they’re willing to be brought on chain)
- Strong Pipeline: 12 month forecast that is 2x “Pool Value in 1 Year”
- Volume Originated last 2 years: At least 2x of target pool size on launch
- Historical Loan Tape : 2 years+
- TIN Tranche: Pool Manager is able to fund the TIN up to $50 million in Pool Value, which is at least $5M in self-funded first-loss capital
- DROP Tranche: Pool Manager is able to fund a portion of the DROP tranche (insert how much)
- Pool Value at Launch: $10+ million
- Pool Value in 1 Year: $50+ million
- Asset Maturity: Ideally less than 2 years; 3 years maximum
The POP Template
When submitting your POP, please title it as so “POP: Business Name”
Overview:
- Business Name:
- Current AUM:
- $ Volume of Transactions Completed Last 12 months:
- Target Launch Date:
- Location and Team Size:
- Years in Operation:
- If less than 2 years in operation, number of years founding team has worked together:
- Historical Loan Tape (years):
- Key Professional Partners (legal, accounting, operational, technical, structuring):
Strategy:
-
Business
- Describe your business and go to market strategy.
- What makes your approach unique within your industry?
- Why are you a good partner for Centrifuge?
- How do you differentiate yourself from competitors?
- How is your entity financed today, what are the current sources of capital:
- Equity raised:
- Debt raised:
- What is your entity’s revenue/fee model:
- Origination fees:
- Target spread:
- Other:
- Describe your business and go to market strategy.
-
Capital
- Please explain the source(s) of, and ability to scale, your first-loss junior (TIN) capital in the pool:
- Capital relationships and how much you will bring through Centrifuge KYC to invest in either senior or junior tranche of your pool:
-
DeFi
- Outline why DeFi is important to your business strategy:
- Articulate why Centrifuge’s community and protocol is a fit for financing:
Structure: Risk & Terms
-
Please explain the key risks inherent in this opportunity and asset class:
-
Pool Size & Pipeline:
- At Launch:
- 6 Months after Launch:
- 12 Months after Launch:
- Origination Pipeline Details:
-
Asset & Rates:
- Asset Type(s):
- Average Ticket Size:
- Average Asset Maturity:
- Expect Default Rate:
- Expected borrowing rate on senior tranche (on-chain):
- Expected lending rate to end borrower (off-chain):