In order to generate a loan on DeFrag you will need to deposit your NFT collateral into a Vault.
- 1.Get an instant loan without having to negotiate terms with a peer or counterparty, as is the case with most existing platforms.
- 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.Continue utilizing your NFT assets in-game while using them as collateral.
- 1.Select which Genesis Legions you would like to use as collateral.
- 2.Choose how much FRAG (1:1 with USDC) you would like to borrow against your collateral.
- 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.When you borrow for the very first time, a few things will happen as you process your transaction:
- 1.Create your DeFrag Dynamic NFT Vault and deposit your NFT assets.
- 2.Lock up required USDC from the underwriting pool to issue put options.
- 3.Mint FRAG tokens to the borrower.
- 4.Accrue claimable premium fees to the underwriters.