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Pencil Finance

Bringing $3 Trillion in Student Loans On-Chain

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Description

✏️ What is Pencil Finance?

Pencil Finance is a decentralized lending protocol designed to bring student loan financing on-chain. It connects global investors with trusted student loan originators through tokenized loan bundles. By leveraging blockchain technology and a dual-tranche system, Pencil Finance ensures capital efficiency, risk-adjusted returns, and transparency for both investors and lending companies.

Our mission is to make education financing more accessible while opening a new, impact-driven asset class for DeFi participants.

💰 Invest and Earn Interest in Pencil Finance

With Pencil Finance, individual and institutional investors can:

  • Browse curated loan bundles created by verified lending partners from around the world.

  • Choose from two types of tokens:

    • Senior Tranche (Grow Token) – Lower risk, fixed return, paid at the end of the staking period.

    • Junior Tranche (NFT) – Higher risk, higher yield, with monthly or quarterly interest payouts.

  • Track their portfolio via a personalized dashboard showing returns, bundle status, token value, and transaction history.

  • Withdraw interest or redeem tokens based on bundle structure and maturity terms.

By participating, investors earn competitive yield while helping students access affordable education.

🏫 Lend and Raise Funds in Pencil Finance

Verified student loan companies (lending partners) can:

  • Tokenize their student loan portfolios into investable bundles using a transparent, structured process.

  • Create bundles with customizable parameters (total amount, tranche ratio, interest rates, maturity period).

  • List bundles on the Pencil Finance platform to raise funds from a global pool of DeFi investors.

  • Manage bundles through a dedicated dashboard:

    • Withdraw loan capital as needed

    • Deposit repayments and interest

    • Post updates and financial reports

Lending companies gain access to non-dilutive, flexible capital, reduce dependence on traditional financial intermediaries, and improve trust through transparent repayment tracking on-chain.

Offical Website:

https://pencil-finance-frontend.pages.dev/

Smart Contract Deployment:

https://www.notion.so/Smart-Contract-Deployment-1d85d7b2642e801891b7d30dbf7da082?pvs=4

Tech Stack

Solidity