Protocol Actors

Protocol actors perform specific roles within the protocol, and have different access rules enforced across the protocol contracts. Within the same Lending Pool user and non-user roles are exclusive and cannot be used interchangeably. For instance, a First Loss Capital Provider cannot be a Lender or a Borrower at the same time within the same pool and vice versa.

First Loss Capital Provider

The First Loss Capital Provider is a user (an Ethereum address) that first reviews which Borrower requests to the Lending Pool are approved or denied. Additionally which loans to default. Any individual or entity that wants to create a Lending Pool on the Sapling protocol first has to undergo successful KYC / KYB verification, undertaken by Protocol Governance. Once successfully verified, the individual or entity may create a Lending Pool.

Lender

A Lender is a user (an Ethereum address) that provides capital into one or many Lending Pools with the intention of earning interest on the funds provided. Lenders can deposit capital into any open Lending Pool and decide which Pool or Pools to invest in based on key Lending Pool information which will be accessible publicly. Lenders can also withdraw the capital they have provided. Lenders may be subject to any on-chain or off-chain KYC / KYC or identity verification that the individual or entity that created the Pool specifies.

Borrower

A Borrower is a user (an Ethereum address) who borrows capital from one or many Lending Pools and pays back the borrowed funds with interest. Borrowing is subject to on-chain loan initial approval by the First Loss Capital Provider and maybe to any on-chain or off-chain KYC / KYB or identity verification that the Lending Pool requires.

Protocol Governance

Protocol Governance is a decentralised entity with an Ethereum address that controls a set of parameters across the protocol components and takes governing actions regarding the protocol. These governing actions include, but are not limited to, enacting an emergency pause on a Lending Pool or Pools and approving updates to the upgradable components of the protocol.

Lender Governance

Lender Governances are communities of lenders that have voting powers over loan offers in their respective pools.