Using the Protocol
To use the protocol, Borrowers can collateralize their NFTs and take out an ETH loan by issuing a Loan Request. An open Loan Request represents an opportunity for a lender to contribute an amount of ETH and earn interest from any resulting loan.
There are two different types of loan request for Borrowers to choose from:
- Instant Loan: backed by NFT supported by at least one of existing Lending Pools, maximum 30 days duration, instant liquidity available
Lenders who provide ETH to a Loan Request are placed, in order, into the Lending Queue. Their place in this order represents the risk they take when making a loan. Each Lender's loan contribution increases the collateral valuation by the amount of their contribution.
Lenders who don't wish to actively manage their funds can simply deposit said funds into their own Private Lending Pool with custom terms which satisfies their risk/reward expectations.
The Borrower can partially or fully accept a loan at any time during the Loan Request fulfillment process by choosing a Loan Offer where the average APR meets the Borrower's expectations.
The Borrower shall partially repay or repay the loan in full before the end of the agreed upon period; when making early principal repayments, the Borrower must also pay at least half of the corresponding interest due.
Collateralized NFTs are liquidated when the borrower fails to pay back the loan on time.