Overview

DeFrag is a liquidity protocol that allows users to borrow using crypto assets as collateral. There are a few things we do differently from other protocols.

Peer To Peer vs Peer To Pool (NFT Lending)

Peer-to-peer NFT lending networks are highly inefficient. Borrowers seeking liquidity must wait for the counterparty (lenders) to accept their terms. Additionally, borrowers are forced to pay interest in full even if repayment occurs before the expiration date of the term agreement.

We made it simple, deposit collateral, borrow USDC, and repay anytime.

Utilizing Black Scholes Model

We created a dynamic APR pricing model that calculates the cost of borrowing (APR) for the user depending on how risky their loan is. In other words, low LTV = low APR.