OpenSky Finance — the first integrated NFT peer-to-peer lending protocol, powered by aave.com. Lenders enjoy 100% capital efficiency by earning on Aave, instant loans and individual loans. Instant loan borrowers can borrow immediately, based on the floor price of their whitelisted NFTs.
How does the OpenSky Finance project work?
OpenSky Finance — an NFT lending protocol, offering both instant loans and individual loans.
Individual borrowers can borrow flexibly if they want to borrow more with special whitelisted NFTs. Instant Borrowers do not need to worry about forced liquidation as an Instant Loan can only be liquidated if the borrower does not take action to modify or repay the loan on time.
Other work details:
| 1. | Lenders deposit their ETH or USDC into the OpenSky EARN vault. They begin to receive income from the AAVE deposit and interest on an instant loan. |
| 2. | No specific NFT knowledge is required to generate secure and capital-efficient passive income. |
| 3. | Borrowers stake on their whitelisted NFT collections such as BAYC. They can take instant loans, depending on the percentage of the minimum price. The loans have a fixed interest rate and maturity and can be repaid early without penalty. |
Borrowers can make a loan offer for an NFT that is not on the instant loan whitelist or for a high value NFT (like Alien Punk) that is part of a whitelisted collection like CryptoPunks. Initially, only certain collections of NFTs will be whitelisted for individual loans.
This is very capital efficient as pool deposits continue to generate income until an individual offer is made. In addition, when an individual loan is repaid, the funds are returned to the Aave pool, and lenders begin to receive instant loan income without interruption.
Instant loan liquidation
OpenSky Finance — the first NFT lending protocol to eliminate price-based liquidation for peer-to-peer loans.
As long as the borrower takes action to repay or modify (ie renew) the loan during the 2-day grace period when the loan falls due, the borrower will retain control of their pledged NFT.
In rare cases where the borrower does not take action on time, the NFT loan will be repaid by OpenSkyDAO. The NFT will be transferred to the OpenSkyDAO Treasury where it will remain as an investment until OpenSkyDAO members vote on how to dispose of the acquired NFT assets.