Pencil Finance, a decentralized lending protocol, partnered with ErudiFi to provide student loans in Southeast Asia, specifically in Indonesia and the Philippines. The project focused onon-chain private-credit investments, allowing investors to supply capital and track repayments via blockchain records.
The funding bundle was divided into senior and junior tranches. Senior tranches provided fixed returns and repayment priority, while junior tranches offered variable returns and absorbed initial losses from defaults.
