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Borrow

In order to generate a loan on DeFrag you will need to deposit eligible NFT collateral.

How does it work?

  1. 1.
    Deposit one of your eligible NFTs as collateral.
  2. 2.
    Select how much USDC you would like to borrow. Keep in mind the more you borrow, the higher your interest rate.*
  3. 3.
    Repay your USDC loan anytime to withdraw your NFT collateral.
*DeFrag’s loan APR is calculated using the Black Scholes Model, meaning your APR varies based on your Loan-to-Value ratio. Visit https://docs.defrag.fi/protocol/fees-apr for information regarding interest rates on DeFrag.

Why borrow?

  • Get additional liquidity without selling your NFTs.
Deposit NFTs → Borrow USDC → Repay anytime to withdraw NFTs.
  • Increase MAGIC exposure.
Use borrowed USDC to buy MAGIC, betting on rise of MAGIC price in terms of USDC.
  • Additional Strategies
Ignite new strategies from players using lending building blocks from DeFrag.
E.g., Deposit Smols → borrow USDC → buy Smols → Deposit more Smols → borrow more USDC → repeat until desired leverage is achieved.
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.
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