- Version: alpha (as of February 2022)
- Network: Ropsten testnet
Business case, area, or topic to which this use case applies
NFT (Non-fungible token) secured loan
Problem I am trying to solve
Recently, marketplaces dealing with NFT such as digital art are popular, but it is only buying and selling NFT. Since NFTs are valuable, NFT owners can also use them as collateral to borrow Ether. On the other hand, Ether lenders receive principal and interest when they are repaid.
Value that will be created by solving this problem
This is to build a new market where NFT can be used more effectively.
Loan contract workflow
- The exhibitor puts his NFT in the smart contract.
- Bidders bid the desired price.
- The exhibitor makes a successful bid at a price and duration that meets the conditions.
- Bidders can cancel their bids and withdraw their ETH.
- At the same time as the successful bid, the exhibitor can borrow a fund from the successful bidder, where the fee (5%) to the administrator is deducted from the successful bid amount.
- The exhibitor repays his borrowed fund and interest to the successful bidder.
- If there is no repayment from the exhibitor at the time of contract expiration, the successful bidder can withdraw the NFT from the smart contract.