GopLend is currently running on the Neutron network, as it is the most popular blockchain for smart contracts and one of the most secure networks.
In order to make NFTs available on the Neutron network, a dedicated NFT bridge has been developed to connect Neutron collections created on the Stargaze network.
GopLend belongs to the CryptoGopniks community and is governed by the Gopniks DAO ($GOP).
Protocol
GopLend is based on CosmWasm smart contracts and reserved off-chain scripts, it has its own NFT price oracle that keeps the application running.
The protocol supports any CW-721 (ICS-721) standard NFT, which means that virtually any collection from the Cosmos ecosystem can be used for interoperability.
CW721 is a specification for non-fungible tokens (NFTs) based on CosmWasm. The name and design is based on Ethereum's ERC721 standard, with some enhancements.
Key Benefits:
- Yield on USDC deposits
- Instant NFT-collateralized loans
- Discount on NFT up to 20% off market price during liquidation of collateral
Earn USDC
Earn from lending without risking your own funds.
Once deposited, your tokens are used as a loan to those who left their NFTs in the protocol as collateral.
The APR in deposits depends on the ratio of the number of tokens deposited to the number of tokens lent.
After the deposit, you receive “bglUSDC” tokens in exchange for your USDC.
The value of bgl relative to native tokens has been steadily increasing. This is due to payments to creditors and liquidations. And in reality, all of this is reinvested and creates a complex APY.
Since bglUSDC is liquid, you can use it in any DeFi application.
The unlocking period is 2 weeks. Once unlocked, you can exchange bgl Token for native token without fees.
Borrow USDC using NFTs as collateral
The user can borrow indefinitely up to 60% of the value of the asset (the value of the NFT in the protocol).
It's necessary to monitor your LTV (Loan-to-Value). If the LTV is above 72.7%, a portion of the custom NFTs will be liquidated to bring this value below the critical value. The other portion will remain unliquidated.
The protocol will liquidate first those NFTs that bring more revenue to the protocol.
There is a Fixed interest rate of 25% APR in the protocol.
After paying back the borrowed tokens, + interest, you can withdraw your NFTs. When you pay back a loan, you pay the interest first. It's only after the interest is paid in full that you start repaying the loan.
Market Maker
Such a high LTV is achieved with the help of an in-house market maker, which must be provided by the collection owner.
When there is a shortage of bets on the platform, the liquidated NFTs are liquidated into the market maker, which ensures constant liquidity in the protocol. Thus, liquidation doesn't always go to the market maker, but it is always necessary to maintain liquidity in the market maker in case of bad market events.
The way this works is as follows: so-called “offers” are placed inside the platform (users can't sell their NFTs in them, but the protocol will be able to liquidate NFTs in them).
Only collections of NFTs that are on the GopLend whitelist (WL) can be placed in offers. Collections can only get into this WL through the Gopniks DAO.
NFT Price Oracle
Goplend utilizes a special formula of the oracle that smooths out collateral price fluctuations. This prevents price manipulation and liquidation of your assets.
Telegram bot
The bot delivers critical notifications about LTV changes, bglUSDC rate fluctuations, and other important events related to your loans and overall record. In addition, you can access APR and interest rate information with the bot.
