Global Student Loan Crisis Emerges: Pencil Finance Seizes New Opportunities in Education Financing
According to Pencil Finance data, the total amount of global student loans has exceeded $3.8 trillion, with interest rates in many countries reaching over 10%, especially in Latin America, Southeast Asia, and Africa, where educational financing options are extremely limited.
In the past, there were few DeFi solutions in this field, and we hope to fill the market gap with Pencil Finance's innovative mechanism.
As a EduFi protocol operating on the Arbitrum Orbit EDU Chain, Pencil Finance recently secured a $10 million investment from Animoca Brands and Open Campus.
Integration of Fintech and Social Responsibility: The Core Vision and Platform Design of Pencil Finance
Pencil Finance is committed to creating an education financing platform with transparency, cross-border liquidity, and high capital efficiency. Its core operating model includes:
Funding Tier Structure
Tokenization of Student Loans: Tokenizing real student loans through whitelist partners
Dual Tranche Model:
Senior Tier (Senior Tranche, 80%): Invested with $GROW tokens, lower risk and priority repayment, suitable for investors with lower risk tolerance
Junior Tier (Junior Tranche, 20%): Invested with EduFi NFTs, taking on more default risk but relative to receiving higher returns, suitable for investors with higher risk tolerance
GROW Token: GROW is the native token of Pencil Finance, with the following functions:
Staking Rewards: Users can stake GROW tokens to earn additional returns.
Governance Rights: Holders can participate in governance decisions of the protocol.
Transaction Fee Discounts: Using GROW tokens to pay transaction fees provides discounts.
EduFi NFT: EduFi is an NFT representing student loans, with the following characteristics:
Transferability: Users can trade EduFi NFTs on the secondary market, enhancing asset liquidity.
Transparency: Each NFT contains detailed information about the loan, increasing the transparency of borrowing, repayment, and funding.
Risk Control Design: Analysis of Dual Structure and Waterfall Repayment Mechanism
Pencil Finance adopts an 80% senior tier and 20% junior tier funding distribution structure. The repayment order is: 'Senior Tier Principal, Senior Tier Interest, Junior Tier Principal, Junior Tier Interest.'
Repayment by proportion and sequence
This 'waterfall' design maximally protects the interests of $GROW holders and borrowers, dispersing default risk among different tiers of investors, creating a robust risk isolation mechanism.
In other risk control measures, the team has also set up an insurance fund (amount not disclosed) and adjusted loan interest rates according to market conditions to address potential default losses and maintain the liquidity health of the capital pool.
On-chain researcher Pix enthusiastically commented: This is the true RWA
It is worth mentioning that on-chain researcher @PixOnChain has shown high interest and recognition of Pencil Finance:
Is someone really bringing student loans on-chain? Can it be invested in? Pencil Finance might be the most bizarre (and also the smartest?) RWA I've seen recently.
He stated that by tokenizing real student loans through lenders, capital flows to students, and repayment is transparently returned, benefiting everyone beyond traditional finance.
You are not farming cartoon tokens; you are funding real people and gaining real returns, backed by real debt. This may be what RWA is truly meant to be.
(Building a Newborn Economy with Blockchain? 'Baby Tokenization (BabyFi)' Could Combat the Declining Birthrate Crisis?)
Challenging Traditional Finance: A New Future for Education Financing Begins Here
Pencil Finance is not only an investment platform but also a force driving educational equity and cross-border financial innovation. Through tokenization and on-chain transparency, it may open a new door for global students to access educational funding, injecting unprecedented social value and application scenarios into DeFi.
This article Tokenization of Student Loans? Animoca Brands' $10 Million Investment in Pencil Finance Makes Education Financing Simple first appeared on Chain News ABMedia.
