The re-pledging of assets Model
The unique re-pledging model utilised within the HyperExchange enables the generation of complicated trading logic through the use of smart contracts.
Collateral assets provided to Citizens by Tourists can be re-pledged through smart contracts to other users, to provide them with the ability to participate in financial services on the chain, such as collateralised loans.
Assets cannot be re-pledged more than once at a time.
Tourist A has previously pledged assets to a Citizen. Tourist A can borrow an asset from Tourist B, by re-pledging their pledged assets through a smart contract. If Tourist A breaks the contract, or does not have sufficient funds for remittance, the assets Tourist A re-pledged will be automatically deducted, to make a sufficient payment to Tourist B.
When Tourist A re-pledges their assets to a Citizen, the rights to block rewards and distribution rewards from these assets still belong to Tourist A until payment is made.
The specific borrowing contract logic is implemented in smart contracts. Tourists can also develop versatile financial derivatives contracts.
The method for re-pledging assets to Citizens is as follows: