PropFac (https://propfac.xyz) are aiming to become the leading lending platform bridging traditional finance products and cryptocurrency.
The premise is relatively simple, enable cryptocurrency holders to achieve yield on their assets through the provision of traditional finance products via P2P & P2B lending.
The Opportunity
The APR and/or facility fees in almost all traditional finance products vastly exceeds the available yields in cryptocurrency, some examples:
Average rental factoring fees- 23% of advanced amount
Invoice financing- 9.8% of advanced amount
Average APR on Mortgages in the US- 6.8% (https://www.bankrate.com/mortgages/mortgage-rates/)
Average APR on Credit Cards in the US- 24.28% (https://www.lendingtree.com/credit-cards/study/average-credit-card-interest-rate-in-america/)
Average APR on New Car Loans US- 6.5% (https://www.nerdwallet.com/article/loans/auto-loans/average-car-loan-interest-rates-by-credit-score)
Average APR on Used Car Loans US- 11.2% (https://www.nerdwallet.com/article/loans/auto-loans/average-car-loan-interest-rates-by-credit-score)
In comparison, the best yields available on stablecoins in cryptocurrency are around the 6% mark.
With the above in mind, their exists a significant opportunity for cryptocurrency holders to deploy their liquidity in to providing traditional finance products via PropFac.
The Technology
To slash the administrative burden of risk analysis and underwriting, PropFac are deploying purpose built AI tools combined with MPC’s that pull in and review data from external sources including both open-sourced and paid for.
These tools are deployed against the documents uploaded by would be borrowers to comply with KYC & AML whilst also delivering rapid lending decisions.
The system is designed to be fully automated within a customer application flow and triggers extension questions/ request for documents within the application flow.
To facilitate the accrual and dispersal of payments, PayFac intend to leverage the BVNK (https://www.bvnk.com/) payment rails whilst building out our own rails.
The Products
PayFac intend to roll out a full suite of products over the next 12 months, these will include:
Rental Factoring (Currently Live): With rental factoring, landlords can obtain upfront funds covering up to 24 months of rental periods. The monthly payments are then made directly to PropFac by the tenant with the landlord retaining legal responsibility over any missed payments. Payments can be made in fiat or USDC with the latter opening up opportunities for tenants active in the cryptocurrency market. Returns are generated from the difference between the advanced amount and the cumulative amount due over the financed period, this is between 20-25%.
Invoice Factoring: With invoice factoring, businesses can obtain upfront payments for their debtor books either as a full solution or spot factoring. Businesses are advanced a percentage of the outstanding invoice value with their client directed to pay PropFac directly. Once payment has been made, PropFac release the remainder of the balance to the business after deducting the finance fee, this is around 8-11%.
Home Loans: Home loans are a more straightforward product, PropFac advance up to 85% of LTV over a fixed period of time, this can include bridging timescales or traditional home loan timescales of 25-30 years. The loan recipient pays PropFac directly every month and the PropFac Foundation retains a lien over the property on behalf of the investors. Loan recipients can also custody digital assets with PropFac as alternative security to the lien. Typical APR is 5.8% to 11.2% with the offer being made based on data compiled from our AI & MCP processes. PropFac can accept digital currency as payment for the monthly obligations.
Auto Loans: Auto loans for new and used vehicles see an advance of up to 90% of LTV over a fixed period of time, typically 2-5 years. The loan recipient pays PropFac directly every month and the PropFac Foundation retains a lien over the vehicle on behalf of investors. PropFac will take out Guaranteed Asset Protection insurance against all vehicles and deploy a financing method that has no balloon payment at the completion of the finance period. PropFac can facilitate the use of digital assets. Rates for this product vary between 5.5% and 14% depending upon the applicant.
Credit Cards: In conjunction with Visa, PropFac intend to offer a credit card facility in the US and Europe. Under this product, PropFac will use investor funds as security with Visa in the issuance of the credit card facility. PropFac will be able to extend cumulative credit terms to customers based on a multiple of the posted security. Customers will make their monthly repayments + APY directly to PropFac in either fiat or digital currency with PropFac then paying Visa their fee. Rates vary from 19.9% to 38.2% depending upon the applicant.
Returns to Investors
When the periodic payments are made by the PropFac customer they enter the “disbursement pool”. The disbursement pool takes the form of USDC on Base Network. 82% of the disbursement pool is returned to investors every month. In addition, 75% of any arrangement fees are used to acquire the PropFac network token (PFX on Base).
Tokenomics
The centre of the PropFac economy is the PFX token. Each month, PropFac will mint a certain amount of PFX tokens that can be acquired directly from PropFac at the prevailing rate. The entire acquisition value will be used to fund future financial products as described above.
The contract address for PFX on Base is 0x61b7Ec6e6f924Da3df96DAA848361Df7D76631e5
At the end of each month, the disbursement pool value is divided by the circulating supply of PFX with this figure representing the monthly yield per token held.
Dispersal payments will be made pro-rata based on the amount of time the token has been held by an individual wallet.
Any tokens not acquired directly from PFX in the calendar month will be burned from supply.
In addition, any undeployed funds will be returned to the disbursement pool at the end of the calendar month.
Team, Security Tokens, Warrants and Airdrop
Each month a certain amount of PFX is minted by PropFac, this amount is variable based on projected demand.
Team
An additional 10% of the amount of PFX minted per month will be allocated to the PropFac team. These tokens will not qualify for yield payments from the disbursement pool. Each monthly release to the PropFac team will be subject to a 3 year vesting period with a capped unlock per month = to 2% of the available balance.
Security Tokens
An additional 15% of the amount of PFX minted per month will be allocated to Security tokens. Security tokens are available to accredited investors with each token qualifying for a fixed percentage of the 15% allocated.
Each security token costs $100 and there are a maximum of 15,000 available. Any security tokens not acquired by the end of the sale period (June 12th 2025) will be burned from supply with the 15% additional allocation reduced in line with the percentage of the 15,000 burned.
PFX Warrants
An initial 4,000,000 PFX will be minted and allocated to token warrant options that form part of the SAFE funding round. Any PFX warrants that are not exercised will be burned from supply.
Airdrop
1,000,000 PFX will be allocated to an airdrop. Qualification for the airdrop requires interaction with our Airdrop post on X and will be issued pro-rata based on onward engagement metrics. The airdrop will be released in July 2025 and will qualify for yield.
A working example
Based on forecasted demand, PropFac mint 2,000,000 PFX tokens that are listed for sale at the prevailing rate, for this example we will call this $1. This generates $2,000,000 of funds for facilitating loan transactions.
In addition to the 2,000,000 PFX tokens minted, a further 200,000 are minted and allocated to the team.
In addition to the 2,000,000 PFX tokens minted, a further 300,000 are minted and allocated to the security tokens. If all security tokens are sold this will result in 20 PFX being allocated per security token. These each carry monthly yield from the dispersal pool alongside their liquid market rate.
Investment Opportunities
The two main investment opportunities are:
1) SAFE Round. PropFac are running an on-chain SAFE funding round. This includes a traditional SAFE round with $1,200,000 allocation and a $6,500,000 valuation cap. In addition, participants in the SAFE round will be issued token warrants enabling them to acquire PFX token (with full disbursement rights) for $0.34 at any point between the commencement of the SAFE and 31.12.2025.
2) Acquisition of PFX security tokens (taking the form of NFT’s) there are a maximum of 15,000 available with the sale ending on June 12th 2025.
About Us
PropFac was founded by Ayden Walsh. Ayden has over 10 years experience in capital and debt markets including extensive periods with Standard Chartered, Barclays and Lazard. At the latter, Ayden was a project lead on the Lazard x Bitfinex x SkyBridge Invest progamme.
Serving as Chief Financial and Chief Risk Officer is Jason Smith, a 20 year industry veteran with Standard Chartered rising to EVP of Commercial Risk in the Asian Regions.
PropFac is based in Dubai under the oversight of the DFSA.
Acquisition of Pre-Sale / Security Tokens
To take part in either the SAFE Round (Plus Token Warrant) you will need to advise us of the amount you would like to invest, we will then send you a link to the SAFE documents which you sign with your web3 wallet an example is given below:
Security Token- https://opensea.io/item/base/0x592351e7f062d56042acca3f4051fa90ddcc0c52/1
.