Instant Pools
Overview:
Instant Pools offer extraordinary flexibility...they have no time-locked contracts and no back and forth between lenders and borrowers. NFT owners may borrow and pay back at will, and lenders start earning interest from borrowers immediately after lending funds to a pool.
Borrowers:
There are no payback penalties and no initiation fees for instant loans i.e. begin or end an instant loan whenever you want for just the cost of gas. Instant loans can be extended indefinitely by simply paying interest-only payments every 35 days to extend the loan.
Lenders:
The pool contract keeps track of all interest owed per block (every few seconds). Even though some borrowers haven't paid their interest back yet, when you decide to withdraw funds, you get paid in full from the pool's reserve funds.
Supported Collections:
The only difference in some pools may be the supported collections. Depending on community demand, a pool can be created with any parameters. For instance, we may create a "Yuga" pool, that exclusively whitelists BAYC, MAYC, and Cryptopunks. We don't want to create too many pools, since this would spread the borrowing liquidity thin, but there may be reason to have 8-20 total in total. Currently we have 2.
Custom Loans
Custom loans, unlike the instant loan pools, require the borrower to specify the loan terms and then wait for a lender to fulfill their asking terms for the loan. We will not whitelist every NFT collection in our global pools, but can still allow for peer-to-peer custom loan requests. This can apply to newer NFT collections, collections with low floor prices, or obscure NFTs. There is no harm in allowing borrowers to ask for funds from lenders.
What is LiquidNFTs ?
LiquidNFTs is a fully decentralized peer to peer service that allows you to take out a loan using your NFT(s) as collateral.
Alternatively, you may choose to become a lender, and fund loans for others. There are 2 types of loans on our platform: Custom loans and Instant Pools.
Pool Basics:
Every Instant pool has a pre-defined currency and pre-defined floor prices, allowing lenders to seed pools with liquidity for potential borrowers. APY is variable in each pool, depending on the utilization ratio of funds in that pool
Choosing a Pool:
As a lender or borrower, your main choice is deciding the currency you wish to borrow or lend (WETH or USDC). If there are multiple pools of a single currency, then borrowers will be looking at the total amount they can borrow as well as the current APY, and lenders will be looking at the APY and the risk level of the pool to make their decisions.
Loan-to-Value ratio: (LTV)
The LTV ratio in each pool determines how big of a loan lenders can get compared to the value of their NFT. High LTV pools allow borrowers to borrow more, but have less of an buffer in value if the loan defaults. LTV percentage is typically higher in ETH pools, because NFT value is designated in ETH and is more stable vs ETH. USDC LTV ratios are usually lower because the USD value of NFTs is more volatile.
Valuations Oracle
Higher value for rare traits Most platforms value NFTs based on floor price for the entire set only, but we have created our own sophisticated price oracle that offers higher valuations for rare traits. For instance, if you have a gold or trippy fur BAYC, you will be able to borrow a LOT more than a floor BAYC!
How It Works?
Facts about Wise
Here are some key features that make this project unique.
Frequently Asked Questions
WISE is an ERC-20 token accompanied by a Smart Contract and based on the Ethereum blockchain. As a decentralized, trustless, transparent token, WISE provides an alternative for traditional investment systems like bonds and certificates for a deposit (CDs)..
WISE is an ERC-20 token accompanied by a Smart Contract and based on the Ethereum blockchain. As a decentralized, trustless, transparent token, WISE provides an alternative for traditional investment systems like bonds and certificates for deposit (CDs).
You can invest in WISE just like you do in bonds. It’s called staking, where you have to lock up (stake) a number of WISE (tokens) in the smart contract for a certain period. In exchange for locking up your WISE in the contract, you’ll earn interest over the staking period..
WISE is better than bonds and CDs in terms of flexibility and profitability. Unlike bonds, WISE allows you to withdraw your interest at any time during the stake period. Also, you can liquidate your funds in case if you are in need of money. The interest rate with WISE is higher than most traditional investments.
Staking in WISE works more or less like investing in bonds or CDs. You get rewarded in exchange for your deposits. One major difference, however, is in terms of flexibility. Bonds pay out interest on fixed, regular dates. CDs, on the other hand, will only pay out interest on maturity. Neither will allow you to withdraw your interest before or in the middle of the deposit period.
Wise Staking however, offers withdrawal flexibility by allowing users to cash out their interest at any time during the stake period, without a fee or penalty. You can withdraw at any time and multiple times during the period.
The returns in traditional investments like bank deposits and bonds are linked to the market. Nevertheless, they are not as high as you would want and come with great risk. WISE gives you better returns than bonds at a reduced risk.
The value of your WISE stake (shares) will continue increasing with time. The earlier you stake, the more shares you’ll get. Also, the share price will increase by 15% on the third day of the Circulation Epoch, so you can increase your profits by investing during the period.
The advantage of staking longer than 366 days is that all stakes over 1 year get 70% apy.
WISE offers immediate liquidity for anyone who wants to sell their tokens. You can cash out your stake instantly on the Uniswap DEX. Thanks to the massive liquidity pool of WISE, liquidating your stakes is easier than breaking a bank deposit.
WISE offers immediate liquidity for anyone who wants to sell their tokens. You can cash out your stake instantly on the Uniswap DEX. Thanks to the massive liquidity pool of WISE, liquidating your stakes is easier than breaking a bank deposit..
