Summary
Ketju does not approve Figure Markets Democratized Prime: lenders depend heavily on one originator, Figure. Figure can also suspend or close any pool at any time. Democratized Prime is a lending marketplace on Provenance, open to retail with a $10 minimum and no accreditation check. Lenders deposit USD or crypto into pools that run in hourly cycles, and a Dutch-auction engine matches their money with borrowers. The flagship pool, which pays the highest yield, lends against HELOCs that Figure originates. Reporting says Figure itself originated an overwhelming share of the loans behind that pool. Despite the "marketplace" label, a lender takes credit risk on Figure’s own book through a single originator, with no spread across third-party borrowers. Figure Markets Holdings, Inc. keeps the right to "limit, suspend, or terminate access to any Decentralized Protocol Integration or Smart Contract Pool" at any time, a central switch above the on-chain system.
Review triggers
- The lending-pool counterparty is named and confirmed, resolving which of FMHI, Figure Payments Corp, and Figure Securities it is
- Borrower concentration in Figure-originated HELOCs falls to a diversified level, verified from a primary disclosure of pool composition
- The Morpheus Research allegations on delinquency and governance concentration are confirmed or refuted against Figure's 10-K and Provenance on-chain data
- Figure discloses a withdrawal queue or gate for a period of liquidity stress
Facts
- Verdict
- Not approved
- Type
- Other
- Chains examined
- Provenance
- Reviewed
- Last confirmed