Introduction

What's DeFrag?

​DeFrag is a decentralized non-custodial liquidity market protocol where borrowers can use NFT assets as collateral.
We rank the creditworthiness of your NFTs based on a number of factors to determine your collateral ratio.

How is it different?

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.

Peer to Peer vs. Peer To Pool.

Underwriters provide 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.
Borrowers collateralize NFT assets to request loans and the protocol automatically calculates required Put Options to be purchased from Underwriters.

Benefits of using DeFrag:

  • Instant liquidity for borrowers.
  • Liquidation insurance on collateralized NFT assets.

Raising the initial Underwriting Pool from Metamatician NFTs.

In order to provide a frictionless borrowing experience, the protocol needs to raise liquidity to jump-start the liquidity pool that will underwrite the loans.
This is why we created the Metamatician NFTs.
​Metamaticians serve as your User ID in the DeFrag ecosystem. They are randomly generated NFTs based on famous mathematicians and come with a stake in the first Underwriting Pool to earn premium fees. Additional dynamic attributes enable you to accrue more value through your participation in the DeFrag ecosystem.

Governance.

​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.
Last modified 3mo ago