DefiLlama: Founder reveals the plan to launch a new NFT lending platform

The founder of market leading DeFi data platform DefiLlama is developing a new NFT lending protocol that will allow users to become liquidity providers for their collections.

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The founder of DefiLlama "reveals" the plan to launch a new NFT lending platform

According to a recent Twitter post by 0xngmi – anonymous founder of DeFi industry project aggregator platform DefiLlama, a new lending project called “LlamaLend” is about to be launched by this developer in the coming weeks. next time. The protocol aims to solve the problem of NFT holders needing liquidity and support them in more uses.

 

According to GitHub, LlamaLend will allow users to deposit their NFT, receive a signed price attestation from the server, and borrow ETH up to a third of the floor value of that NFT. The user can repay the loan at any time and is charged interest only for the time used. The loan will bear a fixed interest rate based on the loan utilization ratio.

0xngmi writes that pools on LlamaLend will not have a built-in liquidation system. Instead, the liquidator, who is the owner of the NFT collection, has the power to decide how to deal with the bad debt. Even so, 0xngmi proposes an additional deferral fee that scales linearly at 100% of the borrowed amount every 24 hours to prevent repayment.

The protocol will also use an oracle system with a unique requirement to determine the NFT loan price. 0xngmi explained that this move will be the most cost-effective for NFTs with very little borrowing volume as they do not need to update prices continuously on the chain.

NFT lending protocols have gradually emerged as a new trend recently, opening up a broader "playing field" in the NFT industry, which has been severely affected by the widespread market downturn, partly losing take the liquidity of the value collection.

Typical among them is BendDAO - a project that has attracted a lot of attention in recent years in this segment. Although BendDAO is already in a state of crisis that could lead the NFT to the brink of collapse, it is by reacting to the problem quickly through a proposal to change the liquidation index.

BendDAO has bounced back stronger since then. Even after the narrow exit, BendDAO continuously strengthened its platform position by proposing to establish a treasury investment fund of $ 80 million and planning to launch a staking product for Apecoin (APE).

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Oct 11, 2022

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