BIP-0002 - Interest Rate Tiers

Our base rate will be based on the WSJ Prime Rate as shown on the following website. Bonds & Rates

The Market prime rate is always determined at the time loan documents are locked and signed and could change daily. The $BSL loan approval delegation will be required to utilize the WSJ Prime Rate from the link above to derive the base rate.

In addition to the base rate, the $BSL token holders have decided the $BSL Rate Margin on top of prime will be 3.74. WSJ Prime Rate + 3.74 ($BSL rate margin) = base $BSL rate.

In addition to the base $BSL rate, the following criteria will be used to automatically adjust rates based on the loan being applied for.

Length of Loan Rate Increase

  • 6 months - 0%
  • 8 months - .75%
  • 12 months - 1.5%

Credit Score Rate Increase

  • Less than 600 - 1.5%
  • Between 680 and 720 - .75%
  • Greater than 720 - 0%

Experience Rate Discount
For every 2 deals the borrower has completed, up to 10 deals, will be a .1% discount on the total rate. Max discount is .5%

$BSL Token Holder Rate Discount
Discounts are given to $BSL holders who stake their tokens in the SLP for the term of the loan. Each $5,000 worth of $BSL staked at the time of closing gets a .1% reduction in rate with a max of .5% with $25,000 $BSL Staked. When the loan term completes, the borrower can choose to unstake their tokens from the SLP.

The max total combined discount is 1%.

All rates, points, and discounts can be changed at any time by an additional vote.

The equation for determining the entire rate is as follows.

WSJ Prime Rate + $BSL Rate Margin + (Length of Loan Rate Increase + Credit Score Rate Increase) - (Expierence Rate Discount + $BSL Token Holder Rate Discount)

The lowest rate a borrower can qualify for is the following
WSJ Prime Rate (current 3.5%) = 3.5%
$BSL Rate Margin = 3.74%
6 Month Term = 0%
720+ Credit Score = 0%
Expierence Rate Discount = .5%
$BSL Token Holder Rate Discount = .5%
Total Rate = 5.99%

The highest rate a borrower can qualify for is the following
WSJ Prime Rate (current 3.5%) = 3.5%
$BSL Rate Margin = 3.74%
12 Month Term = 1.5%
< 600 Credit Score = 1.5%
Expierence Rate Discount = 0%
$BSL Token Holder Rate Discount = 0%
Total Rate = 9.99%

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