Lenders

This section outlines the key actions that lenders can take within the lending platform, which functions by utilizing NFTs as collateral for loans. The lending protocol ensures the security and management of these loans.

Key Actions for Lenders

Accepting Loans

• Lenders review active loan requests on the platform.

• Upon deciding to fund a loan, lenders provide the capital to the borrower.

• The lending protocol holds the borrower's NFT as collateral, securing the loan until the borrower meets the repayment terms.

Claiming Collateral

• If a borrower defaults on their loan—meaning they fail to repay the loan within the set period plus any grace time—the lenders have the right to claim the collateral.

• Claiming the NFT collateral is straightforward through the lending protocol, eliminating the need for an external liquidator.

• This ensures that lenders can recoup some value from the defaulted loan by taking ownership of the NFT.

The process designed by the lending protocol simplifies transactions between lenders and borrowers by providing a streamlined, secure method for loan facilitation and collateral management. In this system, lenders have a clear and direct path to financial recourse should borrowers fail to fulfill their obligations.