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.

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 put options.
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.
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Efficacy of Options
Peer To Peer vs Peer To Pool
Raising the initial Underwriting Pool from Metamatician NFTs.