Lending

Lending Market

What's the utility of an asset if it can't be collateralized to access liquidity? That was a thought that kept coming up as we discussed the Distant Ecosystem.

With the introduction of The Distant Lending platform, we will establish a two-way lending market for NFT owners to access liquidity and for funders to leverage their assets.

  1. Peer-to-peer Lending: This will operate similarly to how one-to-one lending did back in the good old days. An NFT collector or owner will set up his or her NFT on the Lending Dapp, specifying the amount of tokens that is intended to be borrowed plus the number of days for which they will be borrowed. The funding counterparty will then be able to contribute to the funding of the loan.

  2. Peer-to-Protocol Lending: This is an implementation by the Distant Ecosystem to enable quick access to a loan that has been provided by the protocol participants (stakers). When the funds are returned into compliance with the protocol, the incentives are divided up fairly among all of the participants.

What's the benefit inherent?

The NFT owner can get access to immediate liquidity from an NFT rather than having to sell it. This opens up a whole new can of opportunities

In exchange for funding an NFT loan, the Funding party receives a fixed Return on investment and in the event of default, receives the NFT locked in the escrow. Probably at a huge discount

For setting this up, the Distant Ecosystem is entitled to a compensation fee of 5% upon successful completion. This fee is then distributed to $VOID stakers and veVoid token holders according to a set distribution schedule.

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