Skip to main content
CONFIDENTIAL & PROPRIETARY © 2025 Inkwell Finance, Inc. All Rights Reserved. This document is for informational purposes only and does not constitute legal, tax, or investment advice, nor an offer to sell or a solicitation to buy any security or other financial instrument. Any examples, structures, or flows described here are design intent only and may change.

​
Overview

Inkwell P2P Lending is a non‑custodial, cross‑chain lending protocol. It lets you use assets like Bitcoin as collateral to borrow on other chains—without wrapped tokens, custodial bridges, or giving anyone permanent control over your keys. At its core, Inkwell connects individual borrowers and lenders in peer‑to‑peer (P2P) deals instead of using large shared liquidity pools. Each loan is its own contract with clear terms, clear collateral, and clear responsibilities on both sides. Behind the scenes, smart contracts on Sui coordinate with Ika’s 2PC‑MPC “dWallets”—secure shared‑control wallets—to hold collateral and move funds only when the right checks pass. The protocol enforces the rules; no single company, relayer, or keeper ever gets full control of user funds.

For Borrowers

  • Unlock the value of idle assets (like BTC) without selling them.
  • Borrow on other chains with terms you agree to directly with a lender.
  • Keep control of your keys; collateral sits in a secure, policy‑guarded vault.

For Lenders

  • Lend directly to specific borrowers instead of anonymous pools.
  • Choose the collateral, terms, and risk you’re comfortable with.
  • Rely on transparent, on‑chain rules for when funds move or are liquidated.

For the Ecosystem

  • Turn fragmented, chain‑specific liquidity into a connected credit market.
  • Showcase how Ika’s dWallets and Sui smart contracts can power safer cross‑chain flows.
  • Provide a building block for more complex credit products in the future.
  • No custodial bridges, no omnibus wallets, no standing signing keys.
  • The protocol and Ika dWallets enforce exactly what can happen with collateral and loan funds—and nothing more.

​
What makes Inkwell different?

Most DeFi lending works through shared pools or centralized bridges. Inkwell takes a different path:
  • True P2P loans, not pools – Every loan is between a specific borrower and lender with agreed terms, rather than borrowing from a giant shared pool.
  • Cross‑chain without bridges – Ika dWallets let Sui smart contracts coordinate assets on other chains without wrapping or trusting a centralized custodian.
  • Least‑privilege security – Signing power is scoped to specific actions (for example, “liquidate this loan if collateral value drops below X”) rather than handing over full control of an address.
  • Clear, understandable flows – Borrowers and lenders can see, on‑chain, when collateral is locked, when funds are released, and under what conditions liquidations can happen.

​
How it works (high level)

You don’t need to know how Sui Move or 2PC‑MPC work to use Inkwell. At a high level, a loan looks like this:
  1. Borrower creates a loan request
    • Choose what asset to post as collateral (for example, BTC) and where it lives.
    • Choose what asset to borrow (for example, USDC on another chain) and desired terms.
    • The protocol helps structure these details into a clear, on‑chain request.
  2. Secure vaults are created for collateral and loan funds
    • Inkwell and Ika set up special dWallets (vaults) to hold collateral and incoming loan funds.
    • These vaults are controlled by rules: funds only move when specific conditions are met.
  3. Lenders review and make offers
    • Lenders browse open requests and decide which ones fit their risk/return appetite.
    • They make offers with their own terms (interest, duration, collateral ratio, etc.).
  4. Borrower accepts an offer; the loan is activated
    • When a borrower accepts a lender’s offer, the protocol checks that:
      • The borrower has provided the required collateral.
      • The lender has provided the loan funds.
    • Once everything checks out, the smart contracts instruct the dWallets to move funds into place—collateral is locked, and the borrower receives access to the borrowed asset.
  5. During the loan, health is monitored
    • Price oracles and protocol rules track the value of collateral relative to the loan.
    • If things stay healthy, nothing happens; the borrower simply makes scheduled repayments.
    • If collateral value drops too far, the protocol can trigger safeguards (like partial liquidation) via pre‑defined, audited flows.
  6. Repayment and closing
    • When the borrower repays as agreed, the protocol releases the collateral back to them.
    • The lender receives their principal plus interest.
    • The loan object is closed; no ongoing obligations remain.
Throughout this process, no human operator is approving transactions or moving funds behind the scenes. The rules are written into the protocol, and Ika’s infrastructure ensures they are followed exactly.

​
Who is this for?

Inkwell P2P Lending is designed for:
  • Long‑term holders of major assets (like BTC) who want liquidity without selling.
  • Traders and funds who want to borrow against cross‑chain portfolios without juggling multiple siloed lending markets.
  • Builders and protocols who need more flexible collateral options than single‑chain DeFi typically offers.
Over time, the same machinery can support more asset types and more complex arrangements, but the guiding principle remains: clear, collateralized loans coordinated across chains without introducing new trust bottlenecks.

​
Scope & Roadmap (non‑binding)

To keep the protocol safe and understandable, Inkwell will roll out in phases:
  • Phase 0 / MVP
    • Support a small set of collateral and borrow assets (for example, BTC as collateral, USDC as borrow asset).
    • Focus on simple, well‑understood loan structures and conservative risk parameters.
    • Run on test environments first, then carefully expand.
  • Later Phases
    • Add more chains and assets as Ika dWallet support matures.
    • Introduce more sophisticated risk tools (for example, better health metrics, improved liquidation logic) based on real‑world usage.
    • Explore integrations with other protocols that can build on top of Inkwell’s P2P loans.
This page is a product overview, not legal, tax, or investment advice. Borrowing and lending always involve risk, including the risk of losing collateral. Users should consult their own advisors before using the protocol.