DefiLlama Founder Announces Launch of NFT Lending Platform, Llamalend
The pseudonymous creator of on-chains data analytics, DeFiLlama, Oxngmi, has announced the imminent release of a new project dubbed Llamalend.
The Release of Llamalend for NFT Lending
Oxngmi declared that the smart contract code for a novel NFT lending and borrowing protocol (Llamalend) is almost complete. This program will enable users to borrow their Non Fungible Tokens without necessarily selling them.
Oxngmi said,
“Finally finished the Llamalend contracts and will be launching it soon, anyone interested in trying to break them.”
Defi Llama is a multichain total value locked(TVL) stats dashboard whereby the community maintains and contributes to the data connectors. In a nutshell, the respective society is responsible for the benefaction and prolongation of the major adopters of the ecosystem. All the coordination or changes are conducted via the Defi Llama – adopters GitHub repo, an essential objective.
The program allows users to deposit their Non-Fungible Tokens, gather a signed corroboration from a server, and borrow a third of the NFTs floor value in ETH. In addition, they are given two weeks for the loan repayment. However, they are also permitted to repay whenever they want, and interest will be charged during the time spent. The level of pool utilization rate is the determinant of the fixed loan interest. The owners can partake in ETH provision for borrowing, and NFTs are transferred to the pool owner if the loan is void.
There is no liquidation process for the pools that LlamaLend provides. The pool owners may instead link any liquidation system of their choosing. This indicates that if a user wants to prioritize getting rid of NFTs and avoiding bad debt, they may allow anyone to liquidate an expired loan by giving the borrowed amount. The technology is adaptable and can support any liquidation logic that customers require. Two examples include holding an NFT auction and extending payback terms.
More on the Story
0xngmi suggests an additional late fee that heightens linearly by 100% of the loaned amount every 24 hours to deter repayments. In addition, the protocol will make a single request to an Oracle system to find the NFT borrow price, and users will make no more queries after the process.
To achieve this, a server will keep track of the minimum floor price for a configurable amount of time (such as a week) and, upon request, sign messages with that price. To borrow ETH against that price, the user can post the message on the on-chain. According to Oxngmi, Since NFTs with modest borrowing volumes do not have to adjust their prices on-chain constantly, the move would be the most cost-effective.
The cost of running the suggested oracle for LlamaLend is incredibly low. This is because it never needs to conduct a transaction. Therefore, it takes care of all the complications of managing rising gas prices.
It is anticipated that the 0xngmi proposal will be crucial for NFTs. NFTs can’t just be changed out. Therefore, once an NFT is liquidated, it cannot be retrieved by anybody else. The additional guarantees suggested by 0xngmi are, therefore, crucial for users regarding NFT loans. The technique is primarily designed for modest NFT datasets; it is crucial to mention this.
