The owner can get instant liquidity from a lender while the lender earns > 50% APY
StreamNFT is a peer-to-peer decentralized NFT-backed loan protocol. The borrower can deposit NFT from any collection to get an instant loan whereas lenders can place in a bidding pool for a collection. We've simplified term loans by providing fixed-term loans so that lenders & borrowers don't get overwhelmed with crunching numbers.
The protocol secures tokens by a set of contracts deployed that are managed by the smart contract. NFT Owners can simply invoke the smart contract and initialize, and choose their NFT to get capital from the lender while NFT is locked in the borrower's wallet.
The protocol works permissionless without needing any collateral or integration and aims to solve the following :
- The illiquid nature of digital assets ( In-game assets, tokenized real estate, digital content, etc. ), and provide on-demand liquidity to NFT holders
- Maximizing returns for institutional holders such as gaming guilds, and DAOs by letting them act as lenders
Short-term borrowing usually has high interest, so lenders can earn good returns for their risk in a short amount of time. NFT Owners may have an immediate need for cash now to sweep new mint. We connect the Lender and Borrower, and they both get a good deal. Even in the case where the Borrower fails to pay the loan back, the Lender is still protected because the NFT is worth more than what they paid to offer the loan. Make sense?
You probably are aware of the Orderbook concept. Likewise, protocol maintains offer bids placed by lenders for a collection and shows the best offer to the borrower. The protocol works asynchronously where the lender can place a bid anytime and the borrower can get capital instantly. Let's say, Alice is quite interested in the 'Moonshot Rocket' NFT project and decides to deploy capital for a loan at an offer price of $105 whereas 'Bob' with a higher risk appetite wants to offer a price of $110. At this stage, lenders compete among themselves to be discovered as the best offer by borrowers. Now, NFT owners from the 'Moonshot Rocket' collection will see the best price at $110. Once Eve has taken a loan at $110 then only Trudy will discover the next best offer of Alice ( $105 ).
- We understand the importance of retaining conditional ownership of NFTs. Escrowless transfer of NFTs adds more utility where it can be used for its utility while the loan is active
- We believe in instant loans since you don't have the time to haggle over the loan price. The opportunity may pass or the value of the NFT can change if it takes too long. Traditional Peer-to-peer lending models suffer this downside.
- We respect your degen knowledge and it becomes powerful when the community decides on fair loan offers that make protocol truly decentralized.