Our mission is to empower users with financial tools that create opportunities while prioritizing risk management.
DeFrag is a lending protocol where borrowers can use NFT assets as collateral to get an instant loan.
The protocol automatically insures your NFT assets with a financial instrument called a Put Option. In other words, to receive a loan against your NFTs, the protocol purchases insurance on your behalf via Put Options.
This allows you to get instant liquidity when you borrow, without waiting for another user to accept the terms of your loan. The maximum amount you can borrow depends on the value of NFT assets you have deposited and the available liquidity.
Why TreasureDAO? The current market conditions are difficult. In difficult times, projects have the opportunity to lay the foundation for hypergrowth in the future. We believe the decision to incorporate DeFrag into the foundation of the Treasureverse will be instrumental for both DeFrags’ and Treasures’ future success.
A decentralized video game console thrives on growing NFT collections within the Treasureverse. One of the most significant value unlocks for these NFT collections will be the creation of Liquidity Pools for the purposes of lending and borrowing. DeFrag allows borrowers to use NFT assets as collateral to get an instant loan utilizing a peer-to-pool model.
- Instant liquidity for borrowers: Borrowers can receive a loan by using their NFT assets as collateral by tapping into the liquidity provided by the underwriters, providing an instant loan without negotiating peer-to-peer loan terms. ****Underwriters pool liquidity to earn premium fees from the sale of Put Options without having to negotiate terms such as strike price, or expiration with a peer or counter-party.
- Liquidation insurance on collateralized NFT assets: The protocol automatically insures your NFT assets with a financial instrument called a Put Option. In other words, to receive a loan against your NFTs, the protocol purchases insurance on your behalf via Put Options. The maximum amount you can borrow depends on the value of the NFT assets you have deposited and the available liquidity.
- Ability to utilize collateralized NFT assets in-game: Our dynamic vaults will allow borrowers to get a loan using their in-game NFTs assets without losing the in-game playability of their collateralized NFT assets.
- Lower barrier to enter Treasureverse: DeFrag will enable users to obtain Treasureverse NFTs (starting with Genesis Legions) without having full liquidity to do so. For example, if Genesis Legion asking price is ~$1000 and the user has only $800, in a single transaction DeFrag will: (1) flash-loan the user $200, (2) add it to user’s $800 to purchase the $1000 GL, (3) collateralize on DeFrag to generate $200 loan to repay the flash-loan. As a result, the user would have obtained the Genesis Legion NFT with a $200 loan from DeFrag.
DeFrag is a DAO from day one. We are committed to community-based governance. Each Metamatician NFT will grant 1 vote within DeFrag's governance.
View our first governance proposal on Snapshot [Inactive]: https://snapshot.org/#/defragdao.eth/proposal/0x92c63b0af08a7c094f316a3521dfa7df2f2ef8f396d1a41e3d06e7d8a604354a