The Empowa Blackpaper

The Mathematics, Financial, and Risk Engineering Underpinning the Empowa Ecosystem of Financial and Utility Instruments

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What is the Empowa Blackpaper?

The blackpaper is a summary of the mathematics and financial principles that govern the Empowa platform. It is the theoretical framework upon which pricing and risk data is generated on the platform. In principle the elements that contribute to the Empowa platform value are as follows:

  • Empowa Secured Defined Return Instruments (SDRI) as the primary capital raising instrument and built on digital NFT technology
  • EMP Token as the utility token that collateralizes platform transactions and serves as the platform’s primary liquidity agent and medium of exchange
  • Empowa Platform as the ecosystem within which all components interact
  • Exchanges, both external and internal, as the supply and demand driven facilitation vehicles through which participants are able to engage with the digital Empowa instruments – SDRIs and EMP Tokens

This document attempts to provide a quantitative and analytical framework for defining the logical parameters to the supply and demand mechanisms that ultimately drive the decision to buy into or sell out of an Empowa position.

Empowa Platform Financial Engineering

How can EMP help to unlock capital?

Lets start by looking at how the EMP token can unlock capital by providing a more liquid collateral for the loans issued by Empowa.
January 01, 2021
12 AM

Why is collateralisation needed?

Now we can unpack how this collateralisation will impact demand for the token over time.
January 01, 2021
12 AM

How do we determine the level of collateral needed?

We unpack the formulas used to determine the level of collateral needed for each project. If you want to understand more about how the Empowa housing index ration was calculated you can watch this explanation here - https://t.ly/fuLY
January 01, 2021
12 AM

How do we manage default risk?

Finally we look at the risk to EMP holders in the event of default and what this could mean for the token price. If you would like to understand how RealFi and DeFi loan collateral differs you can read our article here - https://t.ly/15Kx
January 01, 2021
12 AM

Learn More

Loan Performance Reporting

Lease-to-own explained

Q4 2022 Financial Update