In order to realize faster exits, we wanted the user to put up their exit NFT as collateral. A liquidity provider would then check its validity and on successful validation, credit the funds to the user thereby completing the “Exit/Withdrawal” at the users end. On completion of the exit challenge period, this NFT would then be exchanged by the creditor to get their funds back and earn fees for making the faster exit possible.

We are excited to announce that we are now partners with Nuo Network in order to make faster exits a reality.

About Nuo

Nuo Network backed by ConsenSys, is a decentralized debt platform that connects lenders and borrowers using smart contracts. Nuo uses “Reserve Pooling Model” which unlocks massive liquidity and enables borrowers to take a loan instantly against collateral. Since Nuo’s launch, lenders have deposited $4.5M in reserve pools and $1.75M in loans have been disbursed using the platform making it the #1 lending protocol in Asia.

The flow for the faster exits will be as below (All these steps will be abstracted via UI):

The user wants to exit Matic’s Plasma side-chain, she initiates the exit and an exit NFT is minted. This NFT denotes the number of tokens that are eligible for withdrawal. Using Matic Wallet she can put up the NFT as collateral on Nuo The lender checks the validity of the Exit NFT before approving the request Upon the lender’s approval, the request is sanctioned and the tokens are released to the user after deducting a small exit fee. These tokens come from Nuo’s reserve pool Upon completion of the challenge period for this Plasma exit, the NFT can then be redeemed to credit the amount back to Nuo’s reserves

With the help of a lending partner, the exit experience becomes seamless and results in opportunities to put otherwise dormant assets to work.

Matic is pioneering the development of faster exits for Plasma chains. This has the potential to be used across the whole Plasma ecosystem for enabling faster exits.

“Our goal is to use decentralized debt to create new user experiences in financial markets which otherwise weren’t possible before. Instant plasma exits using Nuo reserve pools is a step towards creating these unique borrowing use cases which the platform is designed for. This will increase reserve pool utilization ever further and ensure highest returns for lenders.” — Siddharth Verma, Co-Founder of Nuo.

This will lead to a new revenue generation avenue for lending platforms as L2 solutions become the mainstay for scaling transactions. The users on Nuo will benefit as they stand to earn interest from the fees charged on every exit.

This is the beauty of Open Finance #DeFi!

We at Matic are looking forward to supporting Nuo in every way possible to make faster exits transform from an idea to reality.

Onward!!