Is Pledge Finance the Game-Changer for Crypto Lending and Borrowing?

Pledge Finance aims to disrupt lending and borrowing with its unique approach as a decentralized bank that offers fixed rate fixed term loans. They offer non-recourse loans called senior and junior tokens, which are all fungible and represent a claim on the collateral. The platform allows users to lend, borrow, and earn interest without holding their token, making it a popular option for whales and miners. The team includes experienced individuals from Microsoft, Stanford, and high-profile advisors such as Brian Brooks, a former regulator for the US government. Pledge Finance plans to introduce NFTs as collateral for their pools in the future.


Pledge Finance is a startup that is aiming to disrupt the traditional lending and borrowing industry with its unique approach. The company claims to be the world’s leading marketplace for financial NFTs, and its core products are fixed-rate, fixed-term loans that differ from what other DeFi protocols offer.


Before diving into the details of Pledge Finance, it is important to note that this is a sponsored overview video of the project. Although they have a token, the video does not recommend buying it. Instead, the focus is on understanding the platform and its approach.

Pledge Finance Overview

Pledge Finance is a decentralized bank running on Binance Smart Chain (BSC) that offers fixed-rate, fixed-term lending and borrowing of crypto assets. By using Pledge Finance, users can lend their coins and earn much higher rates than what traditional banks offer. Pledge Finance is able to give higher rates because there are no underwriters or physical branches, and everything is handled by software and smart contracts, resulting in savings passed on to the users.

Non-Recourse Loans

Pledge Finance offers fixed-rate financing, which is better than variable rate loans. Fixed-rate financing provides more certainty and allows users to minimize their risk. Pledge Finance aims to bring these financial products to the DeFi space, using non-recourse loans that are popular in traditional finance. These loans enable lenders to seize only the collateral put up in the loan, even if its value drops and cannot cover the entire debt.

Pledge Finance Process

Pledge Finance’s process has four distinct phases: marketing phase, settlement phase, maturity phase, and claim phase. During the marketing phase, lenders and borrowers come together to form a market and utilize pools to facilitate lending and borrowing. The settlement phase is the balancing phase where smart contracts ensure that everything is balanced. The maturity phase is when the pool automatically sells the collateral on the market for stable coins, and the claim phase is when lenders and borrowers claim their returns.

The Unique Feature of Pledge Finance

One of the unique features of Pledge Finance is the use of senior and junior tokens that represent a claim on the collateral. Both fungible tokens make it possible to trade them for quick liquidity, even after entering loan agreements. This approach is unique, and traders can stake and earn extra rewards by trading these tokens on Pledge Finance or providing them as liquidity on a PancakeSwap pool.

Pledge Finance Team

The Pledge Finance team is led by Tony Chan, who is an ex-Microsoft employee and Stanford alum, and Nicole Chang, who is the former VP of East West Bank and ex-president of Stanford’s business schools alumni association. Pledge Finance has high-profile advisors, such as Brian Brooks, who is the former regulator for the US government, and Jeff Strand, a Stanford professor.


Pledge Finance offers a unique approach to lending and borrowing that differs from what DeFi protocols offer. Its fixed-rate, fixed-term loans use non-recourse loans that are popular in traditional finance, making Pledge Finance a suitable platform for both whales and regular users. Its use of senior and junior tokens is also unique and allows traders to facilitate quick liquidity. Although the Pledge Finance token is not recommended, the platform can be used to lend, borrow, and earn interest without holding their token.

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