How It Works

Wagon Network enables supply chain MSMEs to access asset leasing through decentralized lending pools. Here's how the process works from end to end:

Step-by-Step Flow:

1. Lease-to-purchase proposal MSME logistics operators (borrowers) submit a proposal to lease productive assets like trucks.

2. Asset pool creation Upon approval, the Wagon team opens an on-chain lending pool via smart contract.

3. Investor deposits Investors contribute stablecoins (e.g. IDRX or other supported tokens) into the pool.

4. Token issuance In return, investors receive pool tokens representing their claim to the principal and yield.

5. Fund disbursement Funds are disbursed by Wagon to the Special Purpose Vehicle (SPV), responsible for executing the lease.

6. SPV establishment, asset procurement & insurance The SPV procures the asset, ensures it is insured, and prepares it for leasing.

7. Lease agreement The SPV signs a rental contract with the MSME. Payments are made in local currency (e.g. IDR).

8. Rental income received The SPV collects rental payments and converts them to stablecoins for distribution.

9. Revenue distribution Income is distributed to token holders automatically by smart contract.

10. Contract maturity At the end of the term, the principal is returned to investors and the pool tokens are burned.

🛡️ Risk Mitigation

• SPV layer separates legal and operational liability.

• Asset insurance ensures principal protection.

• Token burning ensures integrity of circulating supply post-maturity.