Tokenization of student loans? Animoca Brands invests tens of millions in Pencil Finance to make education financing easier.

Global Student Loan Crisis Emerges: Pencil Finance Seizes New Opportunities in Educational Financing

According to data from Pencil Finance, the total amount of student loans worldwide has surpassed 3.8 trillion dollars, with interest rates exceeding 10% in many countries, especially in Latin America, Southeast Asia, and Africa, where education financing options are extremely limited.

In the past, there were few DeFi solutions in this field, and we hope to fill the market gap with the innovative mechanism of Pencil Finance.

As the EduFi protocol running on the EDU Chain of Arbitrum Orbit, Pencil Finance just received a $10 million investment from Animoca Brands and Open Campus a few days ago.

The Integration of Financial Technology and Social Responsibility: The Core Vision and Platform Design of Pencil Finance

Pencil Finance is dedicated to creating an educational financing platform that features transparency, cross-border liquidity, and high capital efficiency. Its core operating model includes:

Capital Layering Structure

Student Loan Tokenization: Tokenizing real student loans through whitelisted partners.

Dual Layer Asset Pool Model (Dual Tranche Model):

Senior Tranche (, 80%): Invested with $GROW tokens, it carries lower risk and will be prioritized for repayment, suitable for investors with a lower risk tolerance.

Junior Tranche, 20% (: Invested with EduFi NFT, bearing more default risk, but relatively obtaining higher returns, suitable for investors with a higher risk tolerance.

GROW Token: GROW is the native token of Pencil Finance, with the following functions:

Staking Rewards: Users can stake GROW tokens to earn additional income.

Governance rights: Holders can participate in the governance decisions of the protocol.

Fee Discount: You can enjoy a discount by paying fees with GROW tokens.

EduFi NFT: EduFi is an NFT representing student loans, with the following features:

Transferability: Users can trade EduFi NFTs in the secondary market to enhance asset liquidity.

Transparency: Each NFT contains detailed information about the loan, increasing transparency in borrowing, repayment, and funding.

Risk Control Design: Analysis of Dual-Layer Structure and Waterfall Repayment Mechanism

Pencil Finance adopts a funding allocation structure of 80% senior layer and 20% junior layer. The repayment order is: "Senior layer principal, senior layer interest, junior layer principal, junior layer interest."

Repayment according to proportion and order

This "waterfall" design maximizes the protection of the interests of $GROW holders and borrowers, while diversifying default risks among investors of different tiers, thereby forming a robust risk isolation mechanism.

In addition to other risk control measures, the team has also established an insurance fund ) with the amount not disclosed ( and adjusted loan interest rates based on market conditions to address potential default losses and maintain the liquidity health of the fund pool.

On-chain researcher Pix passionately comments: This is the real RWA.

It is worth mentioning that the on-chain researcher @PixOnChain has shown great interest and affirmation towards Pencil Finance:

Are there really people moving student loans onto the blockchain? Can they also invest? Pencil Finance might be the strangest and smartest I've seen recently? RWA of ).

He stated that by tokenizing real student loans through lenders, capital flows to students, and repayment is transparently returned, which allows everyone beyond traditional finance to benefit:

You are not farming cartoon tokens; you are funding real people and gaining real returns, backed by real debt. This may be exactly what RWA is supposed to look like.

( Building a newborn economy with blockchain? "Baby Tokenization )BabyFi(" can combat the crisis of declining birth rates? (

Challenging Traditional Finance: A New Future for Educational Financing Begins Here

Pencil Finance is not only an investment platform but also a force driving educational equity and cross-border financial innovation. Through tokenization and on-chain transparency, it may open new doors for educational funding for students around the world, injecting unprecedented social value and application scenarios into DeFi.

This article discusses the tokenization of student loans? Animoca Brands invests millions in Pencil Finance to simplify education financing. First appeared in Chain News ABMedia.