Consignment
Receive upfront payment when selling NFTs
Pawnfi's P-Token mechanism eliminates the need for NFT holders to lowball their listings to achieve faster matches for cash flow. The P-Token design allows Pawnfi to offer upfront payment to NFT holders when selling their NFTs. Consigning NFTs on Pawnfi requires locking the NFT in a smart contract rather than just providing a signature and authorization, as with standard listings.
However, users need not worry, as this smart contract has been audited and verified by PeckShield and can securely handle the selling process. By utilizing smart contracts, Pawnfi provides users with increased security and transparency, as well as faster and more efficient transaction processing.
How to consign NFTs?
Here is a step-by-step guide on how users can get an upfront payment by consigning NFTs on Pawnfi:
Go to "Consign" page, and select an NFT user would like to sell (our front-end will be displaying only supported collections). In this example, the user select one of his "Bored Ape Yacht Club"
Select a duration in which user wishes to consign. In this case, 30 days.
A 10% annual interest rate will be deducted from the base income, which is 1,000 P-BAYC, as Custody Fee. Therefore, the user will receive 1,000 x (1 - 10% x 30/365) = 991.78 P-BAYC as an upfront payment.
User needs to set the sale price (denoted in P-Token). In this case, 2,000 P-BAYC.
After approval, the user will receive and see 991.78 P-BAYC in their wallet, and the BAYC will be locked in the Consign Contract and listed for sale in the market.
If this BAYC is sold on the 20th day, Pawnfi will charge a 1% capital gain as a service fee. The remaining amount and unspent custody fee will be sent to the user's wallet. In this case, (2,000 - 1,000) x 99% + 1,000 x (10% x 10/365) = 992.74 P-BAYC. The upfront payment is not required to be returned.
If the user decides an early termination after N days, to get back user's consigned BAYC, he/ she needs to pay back 991.78 + 1,000 x (10% x N/365)
If eventually no one purchases this BAYC within 30 days, to get back the user's consigned BAYC, they need to pay back 1,000 P-BAYC.
After approval, user will receive and see the original BAYC in his/ her wallet.
Please note that interest rate and service fee might be changed due to market conditions or through a successful Pawnfi Governance proposal.
As the custody fee is calculated for every block, the final amount will differ slightly from our example.
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