Solend to Launch NFT Lending in Partnership with Solvent and MonkeDAO

By Soumen DattaNFT

The new isolated pool offers multiple benefits, including a way for small investors to invest in SMBs by purchasing a portion of the floor.

NFT Lending With Droplets

Together with SolventMonkeDAO, and Switchboard, Solend is launching NFT lending, so users can deposit NFTs into a bucket to get fungible tokens (droplets) at a 1:100 ratio. 

In a tweet and an accompanying article from April 1, Solend announced that Droplets would follow the NFT collection’s floor price and could be traded on a DEX. You can swap Droplets for any NFT in your bucket at a ratio of 100:1. 

Let’s take an example to make it more transparent: by depositing one SMB NFT into the Solvent bucket, you’ll receive 100 droplet tokens for SMB, also known as SMBD. You can then trade SMDB or deposit liquidity and stake to earn rewards.  

Source: NFT pool asset parameters.

In addition, Monke holders can also deposit the droplets in the NFT pool, which lends them out for yield and can be used as collateral for borrowing assets like USDC or SOL. 

This new isolated pool will have three benefits:

Provides small investors with access to SMBs by purchasing a fraction of a floor

Increases the liquidity of the SMB floor 

Allows margin trading of SMBs with leverage (for example, you can deposit SMB floor tokens into Solend, borrow USDC, and buy more SMB floor tokens).

Source: NFT pool rewards

These incentives will run for a month, starting 3 hours after the pool launches (2022–03–31 22:00 UTC). You can get access to the NFT pool here. Nevertheless, you must be aware of the risks associated with smart contracts and impermanent losses.

What is Solend:

Solend is an algorithmic, decentralized lending and borrowing protocol on Solana. Lending and borrowing have proven to be critical in a DeFi ecosystem. Current products, on the other hand, are slow and expensive. According to the Solend docs, Solend can scale 100x faster and 100x cheaper on Solana. In addition, Solend strives to be the most user-friendly and secure solution on Solana.

You can use Solend to:

Earn interest

Borrow

Long-term leverage

Short

Learn more about Solend:

Twitter | Website | Discord | Docs

What is Solvent:

Solvent is a platform that converts non-fungible tokens (NFTs) into fungible tokens (droplets), providing users with instant liquidity. The instant liquidity for NFTs can provide users with a platform to trade NFTs more quickly than they can currently. Droplets can be traded on Solana’s AMMs and Serum order books. Users can exchange their droplets for NFTs in the Solvent buckets or swap droplets for $USDC directly from the platform. They can also put their droplet liquidity into liquidity pools and earn liquidity rewards.

Learn more about Solend:

Twitter | WebsiteDiscord | Telegram 

What is MonkeDAO:

MONKEDAO is a Decentralized Autonomous Organization that provides unparalleled value to its members and the Solana ecosystem through community-led projects, connections, and innovation. According to the Gitbook documentation, MonkeDao’s vision is to be the premier decentralized community of Web3 that expands beyond Solana. MonkeDao seeks to provide unparalleled value to its members and the Solana ecosystem through community-led projects, connections, and innovations. 

Learn more about MonkeDao:

Twitter | Website | Gitbook | Discord

What is Switchboard?

Switchboard is a generalized, community-curated oracle network designed to incentivize bringing the long tail of data onto the blockchain. Switchboard appeals to a market of curators incentivized to organize unique off-chain data sources and publishers eager to decentralize quantitative data feeds by leveraging the wisdom of crowds.

Learn more about Solend:

Twitter | Website | Discord | Telegram 

Source : web3wire.news

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