Presets:
Loan Parameters
Live Model
$100,000
$10,000
$1,000,000
$2,000,000
13.0%
10.0% (Low friction)
13.0% (Avg)
16.0% (Peak Rake)
Percentage of total loan cashflows captured by legacy underwriters, brokers, and syndicated loan administrators.
8.5%
3.0%
8.5%
18.0%
1.2%
0.2% (Subnet/L2)
1.2% (Baseline)
3.0% (Full audit/oracle)
Disintermediation Ledger
Intermediary Cut Eliminated:
$1,274
Traditional Banking Overhead Saved:
$1,306
Total Annual Value Reclaimed:
$2,580
Reclaimed Share of Loan Principal:
2.58%
Traditional Cost
$9,800
/yr
Includes 130 bps legacy bank spread & fee rake
Tokenized Cost
$7,220
/yr
Direct borrower expense with smart contract routing
Net Lender Yield
7.3
% APY
Gross 8.5% minus 1.2% protocol gas & pool maintenance
Cost & Yield Breakdown Comparison
Traditional Bank vs. Avalanche Tokenized PoolMechanics of Disintermediation:
When commercial loans move on-chain, smart contract pools replace broker commissions, trust escrow fees, legal documentation overhead, and secondary warehouse line warehousing fees. The resulting $2,580 annual delta can either reduce direct interest for the borrower or boost liquidity provider yield.
Comparative Institutional Breakdown
P = $100,000| Dimension | Traditional Commercial Loan | Tokenized Credit Pool | Disintermediation Net Advantage |
|---|---|---|---|
| Total Annual Borrower Cost | $9,800 | $7,220 | +$2,580/yr savings |
| Effective Borrower Rate | 9.80% | 7.22% | -2.58% APR |
| Lender / LP APY | 5.50% (post-spread) | 7.30% APY | +1.80% APY |
| Intermediary Take-Rate (Bank Rake) | 13.0% ($1,274) | 0.0% ($0) | $1,274 returned |
| Settlement & Servicing Speed | 30 to 60 days (manual title & escrow) | T+0 Real-Time Subnet Finality | Instant Automation |