BuyNow Finance
Protocol Documentation v2.0
🐿️ The Squirrel Philosophy
Squirrels are nature's smartest investors. They gather and hoard acorns during autumn — buying low when resources are abundant — and feast on their stash during winter when prices are high. BuyNow Finance follows the same principle: hoard crypto assets now with leverage, and harvest the gains later.
Like a squirrel that only needs a small amount of effort to secure each acorn, our users only need 20% down to secure a full token position. The remaining 80% is paid over 12 monthly installments — and just like a squirrel's buried acorn is safe from the winter storms, your position is never liquidated due to price drops. As long as you keep making payments, your crypto stash is safe.
The protocol is 100% community-owned with no VC funding — a true colony of squirrels. 50% of $BNPL tokens are airdropped to active colony members over 48 months based on protocol usage. All smart contracts are upgradeable via UUPS proxy pattern with authority held by the team wallet.
Down Payment
20%
of premium price
Premium Markup
10%
on seller's limit price
Payment Term
12 mo
equal installments
Liquidation
None
payment-based only
Protocol Mechanics
Seller Creates a Limit Order
A seller deposits tokens (e.g., cbBTC or WETH) into the smart contract and sets a limit price in USDC. The protocol automatically calculates the premium price by adding 10% on top of the seller's limit price. For example, if a seller lists 1 BTC at $100,000, the buyer's price becomes $110,000.
The seller's tokens are locked in the smart contract as collateral. The seller can cancel unfilled portions at any time.
Buyer Pays 20% Down Payment
A buyer selects an order and pays 20% of the premium price in USDC. Using the example above, the buyer pays $22,000 upfront (20% of $110,000). This down payment is immediately forwarded to the seller.
Partial execution is supported — a buyer can purchase any portion of a seller's order. Multiple buyers can fill the same order.
12 Monthly Installments
The remaining 80% ($88,000 in our example) is divided into 12 equal monthly payments of $7,333.33. Each payment is due exactly 30 days after the previous one. Payments are made in USDC and forwarded directly to the seller.
The payment schedule is fixed at position creation. There are no variable interest rates, no compounding fees, and no hidden charges.
Collateral Released or Default Triggered
After all 12 payments are completed, the token collateral is released to the buyer's wallet. If the buyer wants to exit early, they can pay off the remaining balance at any time with no penalty. If a payment is missed, default is triggered.
The buyer can trigger an early exit at any point by paying the remaining debt in full. No early exit penalty applies.
Pricing Example — 1 BTC Purchase
| Item | Amount | Calculation |
|---|---|---|
| Seller's Limit Price | $100,000 | Set by seller |
| 10% Premium Markup | $10,000 | $100,000 x 10% |
| Buyer's Total Cost | $110,000 | $100,000 + $10,000 |
| Down Payment (20%) | $22,000 | $110,000 x 20% |
| Remaining Debt | $88,000 | $110,000 - $22,000 |
| Monthly Payment | $7,333.33 | $88,000 / 12 |
| Platform Fee (1% of premium) | $100 | $10,000 x 1% |
Fee Structure
BuyNow Finance maintains a transparent and minimal fee structure. All protocol fees are collected in the original token format (e.g., BTC fees stay as BTC) and sent to the team treasury wallet.
Platform Fee
1%
of the 10% premium markup
Charged once at position creation. On a $100K asset with $10K premium, the platform fee is $100 (1% of $10K). Fees are collected in the original token format and sent to the team treasury.
Liquidation Penalty
5%
on buyer's leftover (above-water default only)
Only applies when a buyer defaults and the position is above water. The collateral is sold on market, the seller is paid first, and the buyer receives the leftover minus a 5% penalty to the treasury.
Early Exit Fee
0%
no penalty for voluntary early exit
Buyers can exit their position at any time by paying off the remaining balance. The collateral is released immediately with zero penalty.
Seller Fee
0%
sellers pay no fees
Sellers are not charged any fees. They set their limit price, receive the full premium from buyers, and get monthly payments forwarded directly to their wallet.
Fee Destination — Team Treasury
All protocol fees are collected in the original token format (BTC fees as BTC, ETH fees as ETH) and sent to the team treasury wallet. This wallet also serves as the contract deployer and upgrade authority.
Fee Comparison with Traditional DeFi
| Protocol | Borrow Rate | Liquidation Penalty | Price Liquidation |
|---|---|---|---|
| BuyNow Finance | Fixed 10% | 5% (above-water only) | None |
| Aave | Variable (2-15%+) | 5-10% | Yes |
| Compound | Variable (3-12%+) | 8% | Yes |
| Perp DEXs | Funding Rate | 100% (full loss) | Yes |
Default Scenarios
When a buyer misses a monthly payment, anyone can trigger default on the smart contract. The outcome depends on whether the position is "underwater" or "above water" at the time of default.
Underwater Default
Asset value < remaining debt owed to seller
If the token price has dropped significantly and the collateral value is less than what the seller is still owed, the seller receives all of the collateral. The buyer loses their position and all payments made so far. There is no open market liquidation — the seller simply gets their tokens back.
Seller Gets
All Collateral
+ payments received
Buyer Gets
Nothing
position forfeited
Liquidation
None
no market sale
Above-Water Default
Asset value > remaining debt owed to seller
If the token price has held or increased and the collateral value exceeds what the seller is owed, the collateral is liquidated on the open market via Uniswap V3. The seller receives their remaining owed amount first, the platform takes a 5% penalty from the buyer's leftover, and the buyer receives the rest.
Seller Gets
Remaining Owed
priority payment
Buyer Gets
Leftover - 5%
after seller + penalty
Platform Gets
5% Penalty
to team treasury
Voluntary Early Exit
Buyer pays remaining debt to exit early
At any time, the buyer can choose to pay off the remaining balance in full. The collateral is immediately released to the buyer's wallet with zero penalty. This is the recommended way to take profit on a position.
Seller Gets
Full Payment
remaining debt paid
Buyer Gets
All Collateral
immediately released
Penalty
None
zero fee
Tokenomics — $BNPL
$BNPL is the governance token of BuyNow Finance. Total supply: 1,000,000,000 tokens. There is no public sale, no VC allocation, no partnership tokens, and no liquidity mining.
| Allocation | Percentage | Tokens | Vesting |
|---|---|---|---|
| Community Airdrop | 50% | 500,000,000 | 48 months, monthly distribution based on points |
| — Usage-Based (Users) | 40% | 400,000,000 | ~8.33M/month based on usage points |
| — Referral Rewards | 10% | 100,000,000 | ~2.08M/month based on referral leaderboard |
| Protocol Treasury | 30% | 300,000,000 | Managed by team wallet for protocol development |
| Development Team | 20% | 200,000,000 | 1% at launch (10M), 19% over 48 months linear |
What's NOT Included
Team Wallet
Deployer, upgrade authority, and treasury manager:
Airdrop Distribution Model
500M tokens (50% of supply) are distributed to the community over 48 months. Distribution is based on monthly points earned from protocol usage and referral activity.
Earn Points Monthly
Use the protocol — trade, hold positions, make payments on time, refer friends. Each action earns points that reset monthly.
Monthly Snapshot
At the end of each month, a snapshot captures all users' accumulated points for that period.
Proportional Allocation
Monthly token allocation (1/48th of total) is distributed proportionally based on each user's share of total points.
User Claims Tokens
Users claim their allocated $BNPL tokens by paying the transaction gas fee. Unclaimed tokens roll over.
Important: Users must claim tokens themselves and pay gas fees. Points reset monthly. Referral tokens are distributed based on the monthly referral leaderboard. Distribution runs for exactly 48 months from contract deployment.
Governance
$BNPL holders who stake their tokens for 14 days can participate in on-chain governance. Each staked token equals one vote. Unstaking requires a 14-day cooldown period.
| Parameter | Value |
|---|---|
| Minimum Stake Period to Vote | 14 days |
| Unstaking Cooldown Period | 14 days |
| Voting Power | 1 staked $BNPL = 1 vote |
| Proposal Threshold | Must be staked for 14+ days |
| Voting Period | 5 days |
| Execution Timelock | 48 hours |
Governable Parameters
Smart Contracts
All contracts use the UUPS (Universal Upgradeable Proxy Standard) pattern from OpenZeppelin. The upgrade authority is held by the team wallet. This allows bug fixes and feature additions without requiring user migration.
Protocol Contracts (Upgradeable via UUPS Proxy)
BNPLCore (Proxy)
Main protocol contract — handles orders, positions, payments, defaults, and liquidation via Uniswap V3. Upgradeable.
BNPLOracle (Proxy)
30-minute TWAP price oracle using Uniswap V3 pool observations. Upgradeable.
BNPLToken
$BNPL governance token (ERC-20). Fixed supply of 1B tokens.
BNPLAirdrop
Airdrop distribution contract. Monthly claims based on Merkle proofs.
BNPLGovernance
Governance staking contract. 14-day stake to vote, 14-day unstake cooldown.
Upgrade Authority (Owner)
All upgradeable contracts use UUPS proxy pattern with the following wallet as the sole upgrade authority:
Supported Tokens
Technical Architecture
System Overview
User Layer
Seller Wallet
Buyer Wallet
Liquidator Bot
Frontend (React + wagmi + viem)
Trade Page
Positions
Analytics
Governance
Smart Contracts (UUPS Upgradeable)
BNPLCore.sol
Orders, Payments, Defaults
BNPLOracle.sol
30-min TWAP Oracle
BNPLGovernance.sol
Staking & Voting
External Infrastructure
Uniswap V3 Pools
USDC (Circle)
EVM Chain
Key Design Decisions
UUPS Upgradeable Proxy Pattern
All core contracts use OpenZeppelin's UUPS proxy pattern. The team wallet holds upgrade authority, enabling bug fixes and feature additions while preserving user data and positions.
Collateral Held in Native Asset
Unlike lending protocols that convert collateral to stablecoins, BuyNow Finance holds collateral in the original token (e.g., BTC stays as BTC).
30-Minute TWAP Oracle
The protocol uses a 30-minute Time-Weighted Average Price from Uniswap V3 pool observations. Long enough to prevent flash loan manipulation, short enough for current market conditions.
Payment-Based Liquidation Only
By removing price-based liquidation triggers, the protocol eliminates cascading liquidation events that destabilize markets during crashes.
Fees in Original Token Format
Protocol fees are collected in the original token (BTC, ETH) rather than converting to stablecoins. This preserves the asset composition of the treasury.
Security
TWAP Oracle Protection
30-minute time-weighted average prices from Uniswap V3 prevent flash loan attacks and price manipulation.
No Cascading Liquidations
Payment-based liquidation eliminates the risk of cascading sell-offs during market crashes.
Immutable Payment Terms
Payment schedules are fixed at position creation and stored on-chain. No party can modify terms.
Non-Custodial
All collateral is held in the smart contract, not by any centralized entity. Users maintain full control.
Open Source & Upgradeable
All smart contract code is open source. UUPS proxy pattern allows upgrades while preserving user data.
EVM Chain Security
Built on EVM-compatible chains, inheriting Ethereum's security model and battle-tested infrastructure.
Audit Status
The BuyNow Finance smart contracts have not yet been audited by a third-party security firm. A professional audit is planned before significant capital is deployed. Users should exercise caution and only risk funds they can afford to lose during the early stages of the protocol.
Frequently Asked Questions
Ready to Start Trading?
Connect your wallet and explore the first BNPL protocol. No VCs, no private sales — just community.