Checks Whitepaper
  • Cover
    • Checks Whitepaper
  • Overview
    • Introduction
  • Abstract
  • The Problem & Solution
  • MVP Features
    • Introduction to MVP
  • Standard Payment
  • Vesting Schedule
  • Platform Yield
  • Examples
  • Check Minting
  • Portfolio Management
  • NFT CHECKS
    • Design Overview
  • Check Types
  • Platform Structure
    • Tier System
  • Multi-Chain Support
  • Post-MVP Features
    • Introduction to Post-MVP
  • Escrow
  • Auto-Investment
  • Checks DAO
  • Checks Launchpad
  • P2P Lending
  • Paymart Integration
  • Token Economics
    • Check Token Utility
  • Check Token Tokenomics
  • Technical Documentation
    • Smart Contract Design & Security
  • Technical Deep Dive
  • Revenue Model
  • Appendix
    • Conclusion
  • References
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  • Challenges in DeFi
  • NFT Checks – A Solution
  • How NFT Checks Work

The Problem & Solution

Challenges in DeFi

Despite DeFi's rapid growth, certain financial arrangements remain cumbersome. There is a lack of structured payment and escrow primitives – for example, businesses and projects struggle to schedule token payments or lock funds trustlessly over time.

Traditional solutions often involved:

  • Centralized escrow agents

  • Ad-hoc smart contracts

  • High costs and security risks

As one early DeFi founder noted, before new protocols emerged "there was no existing smart contract solution" for simple time-based token distributions or trustless escrow of funds.

Likewise, token vesting for teams and investors is typically handled off-chain or via custom contracts, which can be error-prone and non-transparent. The absence of unified, programmable financial instruments for these use cases limits DeFi's appeal for real-world business needs.

NFT Checks – A Solution

The Checks Platform bridges existing gaps by introducing programmable NFT Checks. Each check embodies a financial contract—such as payments, vesting schedules, or escrows—that is enforced by smart contract code, eliminating the need for trust in a counterparty.

In DeFi, smart contracts serve as autonomous escrow and payment agents, allowing users to trust the code rather than intermediaries. This approach ensures secure, transparent, and efficient execution of financial agreements, leveraging the trustless nature of blockchain technology.

How NFT Checks Work

NFT Checks leverage this property: funds are locked in an NFT's own account and released only according to coded conditions:

  • Time schedules

  • Milestone fulfillments

  • Multi-party approvals

  • And more

This approach greatly enhances trust and security:

  • Terms are verifiable on-chain

  • Execution is automatic

  • No need for lawyers or centralized escrow services

Moreover, the platform integrates AI oracle services to verify real-world conditions (for example, using an optimistic oracle to confirm that a milestone is met before releasing escrowed funds).

By combining programmability, verifiability, and automation, NFT Checks create a powerful framework for decentralized financial agreements that directly solves the pain points of:

  • Unmanaged vesting

  • Unstructured payments

  • Lack of trust in P2P deals

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Last updated 23 days ago