The POP: Template & Criteria

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:

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.

  1. Business Years in Operation: 2 years+
  2. Off-Chain Institutional Investors: Yes/No (they’re willing to be brought on chain)
  3. Strong Pipeline: 12 month forecast that is 2x “Pool Value in 1 Year”
  4. Volume Originated last 2 years: At least 2x of target pool size on launch
  5. Historical Loan Tape : 2 years+
  6. 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
  7. DROP Tranche: Pool Manager is able to fund a portion of the DROP tranche (insert how much)
  8. Pool Value at Launch: $10+ million
  9. Pool Value in 1 Year: $50+ million
  10. 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:
  • 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):
3 Likes

Very well structured, organized and transparent.

As many requests are expected after the process launch, in case of questions or uncertainty, who is the right contact person or group to help further and on which channels?
Bizdev? Forum? Discord?

1 Like

Thank you @Tjure07

The Forum is where all discussion should be handled. In line and on this thread (other other POP threads) depending on what the feedback is specific to (i.e. template vs. Stage 1 process)

It’s essential the community put the thoughts here so the process can be improved in the light of the day and all can follow the line of logic and history that has occurred.

1 Like

Greetings , What is the average amount requested thats closed on the Centrifuge platform so far as I’d like to know the amount to apply for that would be considered and can I apply for multiple loans simultaneously …Are there incentives when I bring multiple business owners to the platform .I know this Defi Model will be an impact in the finance world and I can bring many startups to us this method They ALL need to know this is available NOW !!!

The total amount of assets originated is safely over 100M+ and the incentives are the token rewards that you earn by either financing assets or investing capital. That information is available through our Forum here.

What is the procedure to NFT my invoice for my banking license to finance and launch a mobile investment banking app .Can someone assist me