Easy microfinance makes micro loans of 5,000 EASY, about $50.
Borrowers repay the loan with the reflexive rewards of the token
Community members increase the capital of the institution by transferring some EASY to the easymf wallet
here is how EASY work:
https://ecency.com/easy/@chrisaiki/understanding-the-easy-reflexive-token
The capital is self increasing by reflexive rewards, too.
Explain how borrowers could get a loan in USD backed by the loan in EASY:
How to get a USD loan backed by the EASY loan
The unique "reflexive" property of the EASY token allows for a financial strategy similar to "Self-Repaying Loans" (a concept made famous by DeFi protocols like Alchemix).
Since the borrower cannot sell the 5,000 EASY (because they need it to generate the rewards that repay the loan), they must use it as collateral. Here is the step-by-step workflow for how this works on the XPR Network:
1. The Collateralization (Locking the Asset)
Instead of holding the 5,000 EASY in their standard wallet, the borrower deposits the tokens into a DeFi Lending Protocol on the XPR Network (such as Proton Loan, provided EASY is a supported asset, or a dedicated EasyMF Smart Contract).
Action: The borrower locks 5,000 EASY.
Value: ~$50 USD worth of collateral.
2. The USD Borrowing (Liquidity)
Once the EASY is locked, the borrower can take out a loan in a stablecoin, such as XUSDC (Proton USDC).
LTV (Loan-to-Value): Assuming a safe Loan-to-Value ratio of 50%, the borrower can instantly withdraw $25 USDC to their wallet.
Result: The borrower now has spendable cash (USD) for their real-world needs without selling their EASY tokens.
3. The "Reflexive" Repayment Cycle
This is the magic step. Because EASY is a reflexive token, it automatically generates rewards (yield) just by existing.
Mechanism: Even though the tokens are locked in a smart contract, the contract collects the reflexive rewards (the balance increase).
Flow: The smart contract harvests these rewards and sends them directly to the EASY Microfinance institution.
Outcome: These rewards act as the automatic monthly repayment for the original 5,000 EASY loan.
4. Closing the Loop
Over time, the reflexive rewards pay off the obligation to Easy Microfinance.
Once the Microfinance loan is satisfied, the borrower still owes the $25 USDC to the lending protocol.
They can repay that $25 USDC at any time to unlock their original 5,000 EASY, which is now theirs to keep, free and clear.
Summary: The borrower gets immediate cash ($25 USD), and the "reflexive" nature of the token pays the "interest/principal" to the Microfinance institution automatically in the background.
