FRAKT is revolutionizing the Solana blockchain with its decentralized NFT liquidity protocol, facilitating both peer-to-pool and peer-to-peer lending options. This platform enables depositors to provide SOL liquidity to lending pools or directly into order books, thereby earning interest. Concurrently, it allows borrowers to obtain immediate SOL loans by using their NFTs as collateral.
Enhancing DeFi Integration with NFTs
The primary aim of the FRAKT protocol is to amplify liquidity for both common and premium NFTs, effectively integrating these digital assets into the wider DeFi ecosystem. This enables individuals and DAOs to quickly access liquidity, generate consistent yields, and strengthen their communities.
Diverse Lending Products Offered by FRAKT
FRAKT has developed a comprehensive range of products to meet various lending requirements:
- Perpetual Loans and Isolated Lending Pools: These are designed for long-term borrowing, offering adjustable interest rates based on the borrower's chosen loan-to-value (LTV) ratio. High LTV ratios increase potential liquidation costs, necessitating careful monitoring of loan health to avoid collateral liquidation.
- Flip Loans and Aggregated Lending Pools: Targeted at short-term borrowing needs, these loans are based on a percentage of the NFT's floor price and have a set repayment period, with daily accruing fees.
- Bonds and Automated Lending Strategies: Suitable for borrowers needing larger loan amounts, these options provide higher LTV ratios and involve less intensive management, allowing for a more automated approach to borrowing.
Strategic Borrowing and Lending Features
Perpetual loans enable borrowers to secure SOL from isolated pools, with the flexibility to set desired LTV ratios, which directly influence their liquidation prices. Each whitelisted NFT collection benefits from a dedicated pool, with dynamically adjusted APRs based on current liquidity and utilization rates to ensure competitive returns for lenders.
Flip loans provide a rapid borrowing mechanism, allowing loans of 20%-50% of an NFT’s floor price for a period between 7 to 14 days. These loans accrue fees daily and require full repayment within the agreed timeframe to prevent penalties and potential liquidation.
FRAKT also enhances borrower engagement through notifications about loan status and offers incentives like reduced lending fees for community members who actively participate and accumulate Frakt points.
Automated Strategies and Community-Driven Lending
In addition to manual lending options, FRAKT introduces automated lending strategies that minimize the need for active management by the user. Initially designed by the Frakt team, these strategies will eventually open up for user-generated contributions, fostering a community-driven approach to innovative lending solutions.
FRAKT's decentralized finance solutions provide a robust framework for NFT liquidity, offering adaptable, secure, and efficient borrowing and lending avenues tailored to the evolving needs of the digital asset community. This integration not only enhances liquidity but also empowers users within the DeFi space, paving the way for broader adoption and utilization of NFTs in financial strategies.
