The anonymous creator of the DefiLlama service has announced the upcoming launch of a decentralized NFT lending protocol.
0xngmi, the anonymous creator of the DefiLlama service, announced the launch of the decentralized protocol LlamaLend. The site will allow borrowing ETH, using NFTs as collateral.
The project creators believe that today owners of digital collectibles have the only option to exchange them for more liquid assets, which is to sell them. LlamaLend will let NFT owners gain access to more liquid assets without having to sell their tokens.
The protocol, mediated by Oracle, will receive information about the price of a particular NFT. Users will be able to receive up to a third of the minimum value of the asset as a loan. Loans will be open-ended, charging interest only for the time the loan funds are used.
The protocol includes a fixed interest rate, and its amount will be based on a pool utilization rate. There will be no automatic liquidation system; NFT holders will decide whether to put the asset up for auction or extend repayment plans. The extra late fee will increase by 100% per day.
DefiLlama is a DeFi project aggregator, one of the largest providers of statistical information in the field of decentralized finance. Despite the general decline in market cap amid the current bearish trend, DeFi projects showed the highest level of profitability in Q3 2022.
