💰NFT Collateralised Loans

Borrow against your NFTs as collateral. Lend to peers and earn yield

Borrowers Summary

As a Borrower, you can post a listing asking for a loan - either visible to everyone on the platform or just to whitelisted addresses (if you have a particular person you want to loan from). In the listing, you will be prompted to provide NFT (or multiple) that will enter the escrow contract as collateral. You will specify the amount of capital you are looking for and the duration of the loan. Your posted listing can then get loan offers from peers - and they can counter-suggest changes to the conditions you listed as preferred.

If you accept an offer, you will receive LUNA liquidity from the lender's (peer) wallet into yours. Your NFT gets transferred into an escrow smart contract for the loan duration. Repay the loan before it expires, and you get your NFT back. Default, and the lender can foreclose and receive your NFT.

Lenders Summary

As a lender, you can browse NFT collections on Terra (including Galactic Punks) and offer loans against the NFTs that Borrowers have listed as collateral. By lending, you earn the agreed APR on the loaned amount (when the loan is repaid, the Borrower pays you back the capital you loaned them + the agreed fee on top). If the borrower defaults (doesn´t pay the loan back) the NFT collateral held in the escrow contract is transferred to you = its like purchasing these NFTs at a massive discount. This also opens up a completely new market strategy, “loan to own” = when you loan capital out against the NFTs that you want in hopes that the borrower will default.

Loan Repayments

As Borrower, once you have made payment of the loan back in full, including interest, the NFT will be released from the smart contract (escrow) and returned directly to your wallet. However, if you fail to make payment in full before the due date, the Lender will be able to foreclose and the NFT will be moved from escrow to their wallet.

• You can repay the loan early at any time, but you will still pay a part of interest.

• You can only repay the loan from the wallet you started the loan with.

• Once a loan has been defaulted on, it cannot be repaid any longer, even if the Lender has not foreclosed yet.

• Once a Lender has foreclosed the NFT of a defaulted loan, they become the sole owner and the loan can no longer be repaid through the platform.

Automated Lending Pools

This is a part of the Roadmap following the release of V2. It will allow for quick loans against chosen Collections from an automated pool, with fixed duration and APR - with no need to search for a peer.