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Borrowers

In order to generate a loan on DeFrag you will need to deposit your NFT collateral into a Vault.

Benefits of using DeFrag.

  1. 1.
    Get an instant loan without having to negotiate terms with a peer or counterparty, as is the case with most existing platforms.
  2. 2.
    Get back the same NFT you collateralized. DeFrag doesn't fractionalize your NFT assets unless you get liquidated in which case the NFT is fractionalized and fractions are proportionally split between all the underwriters.
  3. 3.
    Continue utilizing your NFT assets in-game while using them as collateral.

How does it work? Genesis Legions NFT Collateral Example.

  1. 1.
    Select which Genesis Legions you would like to use as collateral.
  2. 2.
    Choose how much FRAG (1:1 with USDC) you would like to borrow against your collateral.
  3. 3.
    Depending on the current NFT average floor price and the amount you are requesting to borrow, the protocol will automatically calculate the required Put options you would need to buy from the underwriting pool in order to ensure your NFT's floor price in case of a liquidation.
  4. 4.
    When you borrow for the very first time, a few things will happen as you process your transaction:
    1. 1.
      Create your DeFrag Dynamic NFT Vault and deposit your NFT assets.
    2. 2.
      Lock up required USDC from the underwriting pool to issue put options.
    3. 3.
      Mint FRAG tokens to the borrower.
    4. 4.
      Accrue claimable premium fees to the underwriters.
DeFrag is an experimental project. DeFrag is not providing any investment advisory or recommendation service. By using DeFrag you agree that you are using the services at your own risk and that you will not and do not hold DeFrag or it's core team members liable should the services not perform as per your expectation. DeFrag is not a licensed financial advisor under any law. Please consult your own independent investment advisor before making any investment decisions.