Cyan has emerged as a groundbreaking service in the digital realm, offering the first-ever Buy Now, Pay Later (BNPL) solution tailored specifically for the metaverse. This innovative platform is reshaping how users acquire NFTs and other virtual assets, making them more accessible to a broader audience. With over 2,100 users and a loan volume reaching $15 million, Cyan's impact is significant and growing.
How Cyan Facilitates Asset Ownership in the Metaverse
Cyan's platform provides two primary financial services to facilitate easier access to metaverse assets. Firstly, users can choose to finance their purchases by spreading the cost over three months. Secondly, for those who already own NFTs, Cyan offers the option to secure a loan by using these digital assets as collateral. Additionally, Ethereum holders can leverage their cryptocurrency by placing it in Cyan’s Vaults, where it earns yield over time.
Expanding into ApeCoin Staking
On November 14, 2022, Cyan expanded its services to include ApeCoin (APE) staking, catering specifically to holders of NFTs from Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and as an additional option, Bored Ape Kennel Club (BAKC). This feature allows users to stake their APE in various ways, including depositing into Cyan's ApeCoin Staking Vault, engaging in auto-compounding while retaining voting rights, or staking alongside their NFTs.
Flexible Purchasing and Loan Options for BAYC and MAYC Holders
Cyan provides tailored purchasing solutions for BAYC or MAYC NFTs, allowing buyers to make an initial down payment followed by a three-month installment plan. For NFT owners seeking immediate liquidity, Cyan offers a three-month loan against their digital assets, which can still be utilized through the Cyan Wallet during the loan period.
Understanding Cyan's Financial Services
Buy Now, Pay Later for NFTs Explained
Similar to traditional BNPL services like Klarna and Affirm, Cyan's BNPL service breaks down the total cost of an NFT into manageable installments. Instead of making a single large payment on platforms like OpenSea, users can make an initial down payment followed by smaller payments spread over three months.
Financing NFT Purchases
Cyan operates as a decentralized finance (DeFi) protocol that connects users seeking to leverage their NFTs with those looking to earn yields by staking Ethereum. Starting a BNPL plan involves a down payment of 25%, with the remaining 75% borrowed to complete the NFT purchase. The purchased NFT serves as collateral, with Cyan Vaults holding a claim against it in case of default.
NFT Loans and Repayment Terms
Cyan offers loans against NFTs where the digital asset is used as collateral to borrow cryptocurrencies like ETH, WETH, USDC, and MATIC. Loan terms can range from 24-hour flash loans to six-month periods, with repayment due every 31 days, allowing borrowers to access up to 66% of their NFT's appraised value.
Default Consequences and Interest Rate Determination
Failure to meet payment obligations results in the transfer of the NFT to a Cyan Vault, where it may be liquidated in the open market. Cyan is also developing a grace period for late payments to provide flexibility. Interest rates are determined by Cyan’s risk engine, which evaluates over 150 characteristics of the NFT, including user creditworthiness and asset quality.
Cyan is at the forefront of integrating financial solutions into the metaverse, offering innovative services that enhance the accessibility and liquidity of digital assets. As the platform continues to evolve, it remains committed to providing secure and flexible options for asset acquisition and management in the virtual world.
