NFT Loans

Efficacy of Options

One reason it is difficult to take a loan against an NFT is due to the volatile nature and in some cases low liquidity of the asset. What happens if the floor collapses?
This is precisely why the protocol makes use of Put Options. The ability to protect and hedge a volatile asset, allows for the protocol to confidently extend loans and provide liquidity to our users.

Peer To Peer vs Peer To Pool

The fragmentation and lack of liquidity in Peer To Peer networks led us to create an automated option underwriting pool. This enables borrowers to get instant liquidity without having to negotiate terms with a peer or counter-party.