At Peoples Reserve, we believe your cost of capital should reflect your commitment to the ecosystem. The PRN Loyalty Program is a dynamic interest-rate optimizer that automatically adjusts your borrowing costs based on your total relationship with the platform. By holding PRN or maintaining a significant portfolio, you move from "Standard" rates into "Institutional-grade" liquidity.
Table of Contents
- How Your Tier is Calculated: Portfolio Power
- Loyalty Tiers & Base Rates
- The Overcollateralization (OC) Multiplier (BLOC Only)
- Strategic Examples: Engineering Your Rate
- Key Program Rules
How Your Tier is Calculated: Portfolio Power
Most platforms calculate tiers based strictly on the amount of collateral in a specific loan. Peoples Reserve takes a more holistic approach.
The Total Portfolio Metric:
Your Loyalty Tier is determined by the aggregate value of your total portfolio and outstanding loans, not just the individual collateral asset. This means as your assets under management (AUM) with Peoples Reserve grow, your borrowing costs across all lines of credit—both BLOC and BBLOC—automatically decrease.
Loyalty Tiers & Base Rates
| Loyalty Tier | BBLOC Base Rate (Bond) | BLOC Base Rate (Bitcoin) |
|---|---|---|
| Diamond | 8% APR | 9% APR |
| Gold | 9% APR | 11% APR |
| Silver | 11% APR | 12% APR |
| Basic | 12% APR | 13% APR |
The Overcollateralization (OC) Multiplier (BLOC Only)
For Bitcoin Line of Credit (BLOC) users, the Loyalty Tier is only the starting point. You have the power to manually drive your rate even lower by increasing your collateral-to-debt ratio.
The Math of Savings:
For every 10% you overcollateralize your loan beyond the starting Loyalty LTV ratio, your interest rate drops by 0.2%.
- The Ceiling: You can overcollateralize up to a maximum of 200%.
- The Maximum Discount: Through overcollateralization alone, you can shave up to 4% off your base loyalty rate.
Strategic Examples: Engineering Your Rate
To visualize how these two systems (Loyalty + OC) work together, consider these two scenarios:
-
Scenario A: The "Basic" Borrower
- Tier: Basic (13% Base BLOC Rate)
- Strategy: Standard 50% LTV.
- Result: 13% APR.
-
Scenario B: The "Strategic" Gold Borrower
- Tier: Gold (11% Base BLOC Rate)
- Strategy: Posts extra collateral to reach 150% overcollateralization (+100% over the start).
- Discount Calculation: 10 intervals of 10% = $10 \times 0.2\% = 2\%$ reduction.
- Result: 9% APR.
Key Program Rules
- Dynamic Adjustments: As the market value of your portfolio fluctuates, your Loyalty Tier may adjust. This ensures you are always receiving a rate that reflects your current standing.
- No Manual Requests: The system automatically calculates your best possible rate based on your current Tier and LTV.
- Loyalty vs. Collateral: Remember, your Loyalty level is based on your total AUM/Loan amount, while your OC discount is based specifically on the collateral tied to that individual loan.