Frakt Introduces Long Term Loans Backed by Blue Chip NFTs on Solana

Frakt has made loans accessible on its platform, collateralized by blue-chip NFTs on Solana.

Yield and Loans Collateralized by Blue Chip NFTs

The FRAKT lending protocol is a peer-to-pool based, decentralized NFT liquidity system built on the Solana blockchain.  Depositors can earn yield on their Solana (SOL) holdings by providing liquidity to lending pools.  Borrowers can pledge their blue chip NFTs as collateral for $Sol loans.

Interest rates are variable and depend on the collateral pledged and the liquidity available in the individual pools.  A low utilization rate combined with high liquidity results in a low borrowing interest rate.  Low liquidity with a high utilization rate results in a higher interest rate on a loan.

Timur Samoylov, founder and CEO of FRAKT said in a recent discussion:

“The Solana ecosystem is rapidly evolving and maturing. We are currently observing a lot of innovations in the NFT space but also at the merger of DeFi with NFTs. Going through bull and bear markets several NFT collections along with their respective communities have rightfully claimed their bluechip status by continuously consolidating their communities, improving their utilities. These bluechip NFTs are now becoming a new but much real asset class that investors want to invest in and keep for the long term in order to benefit from the different advantages associated to their ownership. In that context we decided to release our Perpetual Loans for bluechip NFTs enabling holders to instantly borrow liquidity using their NFTs as collateral, in a similar way people can get loans at the bank using their traditional assets as collaterals. At the same time we enable lenders to deposit their SOL in risk isolated lending pools that fund specific NFT collections. FRAKT Perpetual Loans are instant, cheap and non custodial.”

Isolated lending pools on NFT collections are beginning to be used by DAOs for treasury management.  A DAO can farm liquidity or deposit funds, to earn revenue which is then shared back to the collections as follows:

Samoylov remarked:

“We received great feedback from the Solana community as we even start seeing DAOs deciding to allocate a share of their treasury to their respective risk isolated lending pools (Lifinity and soon MonkeDAO). By funding their pool that way they are providing a lower borrow rate to their holders while generating additional revenue for the DAO.”

Loans that Frakt provides are price-based, require no expiration date, and often have low-interest rates. EMBED TWEET.

What is Frakt

Frakt is a dynamic fractal art NFT collection of 10,000 distinct NFTs that combines fractals, arithmetic, and blockchain.

Frakt is built around “flexibility,” which translates to a critical benefit of Frakt; they can be freely utilized to do whatever you want with them: airdrop them, give them away to friends, or even exchange them on Frakt’s DEX.

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Source : web3wire

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