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DeFragDAO's Snapshot Vote is Live 🚀
Cast your vote to enable instant NFT loans 💸
Snapshot Vote Live
DeFragDAO submitted the first proposal on Snapshot, please follow this link and vote if you are a Metamatician holder and get closer to claiming future rewards. Not a holder?
DeFrag is a lending protocol where borrowers can use NFT assets as collateral to get an instant loan.
How it Works.
The protocol allows you to get an instant loan using NFTs as collateral. It does so by applying a peer-to-pool model connecting borrowers to an underwriting pool. As a borrower, you do not have to wait for another user to accept the terms of your loan.
The maximum amount you can borrow depends on the value of the NFT assets you have deposited and the available liquidity.
Genesis Legions NFTs by TreasureDAO.
Why TreasureDAO? The current market conditions are difficult. In difficult times, projects have the opportunity to lay the foundation for hypergrowth in the future. We believe the decision to incorporate DeFrag into the foundation of the Treasureverse will be instrumental for both DeFrags’ and Treasures’ future success.
A decentralized video game console thrives on growing NFT collections within the Treasureverse. One of the most significant value unlocks for these NFT collections will be the creation of Liquidity Pools for the purposes of lending and borrowing. DeFrag allows borrowers to use NFT assets as collateral to get an instant loan utilizing a peer-to-pool model.
Initial Underwriting Pool.
In order to jumpstart borrowing, the protocol needs to raise liquidity for underwriting initial loans.
This is where Metamaticians come in. Metamaticians are NFTs based on famous mathematicians. They are randomly generated with 100% on-chain art and metadata.
Proceeds from Metamatician NFT mints will be used to jumpstart the initial underwriting pool for TreasureDAO's Genesis Legion NFTs.
This will enable borrowers to generate instant liquidity using Legions as collateral.
In return Underwriters will earn fees based on their stake in the underwriting pool. Because the initial underwriting pool is using liquidity from minting proceeds, Metamatician NFT holders are the initial Underwriters. Each representing a proportional share of the pool and fees earned.
Benefits of using DeFrag:
Instant liquidity for borrowers: Borrowers can receive a loan by using their NFT assets as collateral by tapping into the liquidity provided by the underwriters, providing an instant loan without negotiating peer-to-peer loan terms. ****Underwriters pool liquidity to earn premium fees from the sale of Put Options without having to negotiate terms such as strike price, or expiration with a peer or counter-party.
Liquidation insurance on collateralized NFT assets: The protocol automatically insures your NFT assets with a financial instrument called a Put Option. In other words, to receive a loan against your NFTs, the protocol purchases insurance on your behalf via Put Options. The maximum amount you can borrow depends on the value of the NFT assets you have deposited and the available liquidity.
Ability to utilize collateralized NFT assets in-game: Our dynamic vaults will allow borrowers to get a loan using their in-game NFTs assets without losing the in-game playability of their collateralized NFT assets.
Lower barrier to enter Treasureverse: DeFrag will enable users to obtain Treasureverse NFTs (starting with Genesis Legions) without having full liquidity to do so. For example, if Genesis Legion asking price is ~$1000 and the user has only $800, in a single transaction DeFrag will: (1) flash-loan the user $200, (2) add it to user’s $800 to purchase the $1000 GL, (3) collateralize on DeFrag to generate $200 loan to repay the flash-loan. As a result, the user would have obtained the Genesis Legion NFT with a $200 loan from DeFrag.
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