Project Goal: Our project is to increase the intrinsic value of NFT, instead of keeping it inside a wallet and letting it get dusted, one can monetize it with our platform, either yield interest on it by lending it or use it as collateral to borrow funds. We are also providing a NFT backed liquidity pool which have liquidity equal to the value of NFTs contract are currently holding. Other users can use these pools to swap their tokens.
Users on our platform can get their dusted NFTs to work. If you are holding a metaverse’s asset and you currently don’t have any plans to use it or sell it then our platform is the place.
User can lend their NFTs and earn some interest on it or they can lock their NFTs in our escrow contract to borrow funds. Our escrow contract keeps the NFT within itself for the time period its locked for.
On lending a NFT, it goes to the deposit contract and then a DAO can control it. They performs some business either renting it other users or any other use to yield interest on it and giving the interest back to the owner.
Users can become DAO members by staking TRX tokens.
Equal to the value of NFTs in holding contract, a pool is generated which is funded by the platform itself with TRX tokens.
Users can also swap their USDD tokens with TRX from this pool with a minimal fee.
I would be glad to hear from you guys & hope this will also help other members,
How will the value of the NFT be decided by the holding contract? And any value that is decided what stops in leaving those NFTs in the deposit contract and not returning to pay back and collect the NFT in cases where the price of NFT has dropped significantly?
In case of renting how will the renter benefit from it? And will it be on the latest EIP?
Greetings, @antonio : )
Regarding loans, we don’t focus on any particular NFTs; instead, our DAO will grant loans based on LTV (loan to value ratio). Since we are aware that the values of NFTs are volatile, we will only offer loans with a maximum LTV of 45% (for example, if an asset costs $100 and the LTV is 75%, the borrower can only receive a loan for $75, this same thing happens in traditional collateral loans, and no bank provide LTV of 100% in normal circumstances). We are focusing on providing short term loans (2-3 months loan period) only .
But when it comes to lending NFTs, we focus on particular NFTs. Examples include land NFTs from Decentraland, in-game NFTs, rare art NFTs, some premier event tickets, carbon credit NFTs, etc. Imagine an OTT platform where subscriptions are in the form of NFTs. We can lend them, and our DAO will give an easy mechanism to accomplish these.We believe there is huge potential of this as we are heading to the world of Metaverse in near future, we aim to create an NFT based economy in Metaverse)
As of now for testing and development purpose we will deploy a dummy dapp for minting our own NFTs (TRC-721) and we will set price.
We can use Covalent API to fetch NFT information. We aim to give loans in stablecoin and for all these like getting current market price and stuff Binance provide and API, we will be using it if all goes well.
We think the borrower will be ready to repay the loan on time because the LTV is only 45%. In the event of default, the DAO will take over ownership of that NFT.
Do check my reply to @antonio.
Feel free to express your opinion and questions.
Do checkout our other replies.
Well by lending the NFT, the DAO will be giving you interest on monthly basis. (As mentioned DAO will do some business with it and will generate profit and you will be getting share of it).
Suppose you own a pair of jordan shoes in a metaverse (they are expensive) and you don’t want to sell them. In this scenerio you will come to us, and we will rent them to someone who cannot buy those shoes but can take them on rental. Same could be appplied to a gaming asset (like a gun skin or a axie in axie infinity). DAO can also do other stuff like putting a exhibition with your NFT in some other metaverse.
Thanks for the reply… But i guess either u missed something or I did…
Pls re-explain:
How do u determine the price of NFT (that the user is using as a collateral) (PS. I got it u’ll be giving 45% of that value as loan… but on what price u’ll calculate 45%)
“In the event of default, DAO will take over ownership of NFT” … good…clear… but what will DAO do with it if in case the floor price of that NFT went drastically down (less than the loan amount)…?
Also… say for example… If A opts for renting NFT & his/her NFT is in deposit contract or in simple words…the NFT is rented to B and suddenly A wants to sell his/her NFT due to any reason… then it is possible? Iis there any penalty for A …?
1 more… what is the income generator for project/dao…? How does it generate revenue?
We are using NFT floor price api to get floor price of user’s NFT, if that’s above a threshold then we’ll give 45% of that price.
We will have restrictions like, a user can only collateralize/lend for a period of 1-4months to prevent NFT volatility. NFT is locked in the escrow for that period without DAO’s influence
Thanks for the reply… but pls also reply below 2 also:
strong text
“In the event of default, DAO will take over ownership of NFT” … good…clear… but what will DAO do with it if in case the floor price of that NFT went drastically down (less than the loan amount)…?
If A opts for renting NFT & his/her NFT is in deposit contract or in simple words…the NFT is rented to B and suddenly A wants to sell his/her NFT due to any reason… then it is possible? Iis there any penalty for A …?
But we will take on…yeah : )