Sublime is on a mission to democratize access to credit, allowing loan originations without the need for centralized credit scoring systems. By relying on users' web of trusts and emergent social network properties, we plan to enable the propagation of credit between users even if they aren't connected directly. Relying on trust networks offers some extra perks too - it is more resistant to Sybil attacks, and allows us to skirt around machine learning-based systems that are often fraught with bias and low recall.

At its core, Sublime enables users to leverage their identities to borrow undercollateralized loans. By linking their identity, borrowers effectively utilize their social capital as collateral - should they choose to default on their loan, their reputation is damaged, making it harder for them to be able to borrow in the future.

Loans on Sublime work in three ways:

Pools allow borrowers to create fully customizable loan requests that can be fulfilled by multiple lenders. Borrowers can customize parameters such as the interest rate, collateral ratio, repayment frequency, etc. Each loan request exists as an independent pool.

Furthermore, a borrower can have multiple pools active at the same time, akin to issuing bonds with different levels of seniority:

• 1. Pool 1 (Low risk): 120% collateralized, 8% interest


• 2. Pool 2 (Medium risk): 80% collateralized, 12% interest


• 3.Pool 3 (High risk): 40% collateralized, 17% interest

Lenders can assess borrowers by looking up their identities, past loan performance, as well as other users they've interacted with via their web of trust.

Credit Lines allow a lender and a borrower to set up a line of credit that remains available until either entity choose to close it down. Using credit lines allows borrowers to remain anonymous on-chain. Capital collected by one borrower via a Pool can be directly funnelled via a credit line to another borrower allowing users to create complex capital flows.

Liquidation of collateral can occur in case of missed repayments or margin calls for Pools, or if liquidation thresholds are breached in case of Credit Lines. The options provided give lenders the autonomy to decide how strictly they wish to enforce the terms of repayments and collateral requirements.

Any idle liquidity on Sublime, be it collateral posted by borrowers or capital deposited by lenders in credit lines, can be redirected to earn passive yield on yield generators like Compound, Aave, or Yearn via our Savings Account. Savings Account will serve as the base to enable complex rehypothecation merging capital with credit risk, making finance truly social.

Pooled Credit Lines is akin to a line of credit, except it allows the pooling of funds from multiple lenders which is then available for the borrower to draw capital from. Similar to credit lines, any idle liquidity can be deployed onto a savings strategy to earn passive yield. This also allows reduced costs on the borrower since they're not required to pay interest on any undrawn principal.

Terms of the pooled credit line are suggested by the borrower, who needs to be verified by one of the onboarded verifiers. This acts as a basic check and helps reduce spam requests. Participation of lenders can be restricted as well using verifiers, so that borrowers can implement any necessary checks, such as membership in a private DAO, KYC/AML checks, etc.