OpenSky Finance stands as a pioneering NFT lending and borrowing platform, uniquely powered by Aave. It is distinguished by its dual lending options: peer-to-pool instant loans and peer-to-peer bespoke loans, offering users the flexibility to toggle between these modes in a single transaction.
Innovative Features of OpenSky Finance
Discrete Time-Based Liquidation (DTBL)
This feature enhances the user experience for borrowers by reducing the likelihood of simultaneous loan liquidations, thereby mitigating the risk of accumulating bad debt.
Integration with Aave
OpenSky Finance seamlessly integrates with Aave, channeling lender deposits directly into Aave's robust smart contracts. This integration allows lenders to earn passive income from both Aave and the interest payments from instant loan borrowers, achieving 100% capital efficiency.
Dual Lending Functions
OpenSky is the first NFT lending protocol to incorporate both peer-to-pool and peer-to-peer lending functionalities. This dual approach enables lenders to utilize their Instant EARN pool deposit tokens, known as oTokens, to either make or accept bespoke loan offers, potentially increasing their earnings.
Lender and Guarantor Benefits
Earnings and Guarantees
Lenders benefit directly from deposits made into the Aave V2.0 money market, earning from both Aave and instant loan borrowers. Additionally, guarantors hold exclusive rights to guarantee all instant loans, with the opportunity to acquire premium NFTs at significantly reduced prices should a borrower default.
Bespoke Loan Opportunities
Using their oTokens, lenders can engage in bespoke loan offers, which may yield higher returns. In cases of borrower default, lenders have the chance to acquire the collateral NFT at a substantial discount.
Borrower Advantages
Flexible Loan Options
NFT owners have the opportunity to leverage their assets by taking out loans against whitelisted NFTs for up to 40% of the floor price. For those needing more substantial amounts, or owning NFTs from the bespoke collection whitelist, there are options to engage in peer-to-peer bespoke loan offers.
Loan Management
Borrowers can manage their loans with flexibility, having the option to switch from an instant to a bespoke loan seamlessly, or between different bespoke offers, thanks to the platform's flash loan-enabled reFinance function. This feature is particularly beneficial for managing liquidity issues without forfeiting their NFTs.
OpenSky Loan Structures
Instant Loans
At OpenSky, lenders can start earning immediately by depositing ETH or USDC into the OpenSky EARN vault, benefiting from both Aave's deposit income and interest from instant loans. Borrowers can secure loans instantly against their whitelisted NFTs, with the ability to repay early without penalties.
Bespoke Loans
For NFTs not covered under instant loans or those of higher value within whitelisted collections, bespoke loans are available. This option allows lenders to review and accept loan offers, maintaining capital efficiency as their deposits continue earning until a bespoke offer is accepted.
Liquidation Mechanisms
Protecting Investments
OpenSky Finance has redefined liquidation processes to safeguard the interests of borrowers, lenders, and the overall protocol. For instant loans, as long as borrowers act within the grace period, they retain their NFTs. Failed actions result in the NFTs being held by the OpenSkyDAO Treasury until a collective decision on their disposition is made. For bespoke loans, if a borrower defaults, the NFT automatically transfers to the lender, ensuring security and simplicity in reclaiming investments.
