Cross-Margin Lending Market

NFT x DeFi Money Market

Pawnfi's Cross-Margin Lending Market is a decentralized lending contract that provides individuals and protocols with permissionless and fully transparent access to financial services. Like Aave/Compound, users can lend/supply any supported tokens on our markets and utilize the provided capital to borrow another supported token.

Notably, Pawnfi supports not only stablecoins (USDT, USDC, DAI, etc.) and mainstream coins (ETH, WBTC, etc.) but also NFTs (BAYC, MAYC, CryptoPunks, etc.). This enables users to utilize NFTs no differently than ERC-20 tokens within Pawnfi's money market. The list of supported assets will continuously expand based on PawnfiDAO governance, providing users with a wide range of assets to leverage and borrow. Pawnfi's Cross-Margin Lending Market offers a secure and efficient means of accessing financial services while promoting greater inclusivity and diversity in the DeFi ecosystem.

How do NFTs work in Cross-Margin Lending Market?

P-Tokens will be the media of how NFTs take effect in the lending market. That is, while supplying 3 BAYC, it is equivalent to supplying 3,000 P-BAYC to the market. Therefore, it not only increases the borrow limit of this supplier but also gives others exposure to P-BAYC for borrowing through the pool.

These supplied NFTs will be safely placed in smart contract rather than directly flowing to the market. While there is sufficient liquidity in the pool and enough P-Token amount on users’ position, they can get back supplied NFTs anytime they are willing to exit.

Is there any benefit from supplying NFTs?

Each token market has its Supply interest rate (APY), and there is no exception to P-Token. As supplying NFTs does equate to supplying P-Tokens, it has the same benefit as supplying any other ERC-20 tokens like USDT/ ETH - earning interest! That is, rather than sitting in your wallet, spare NFTs can earn passive income for users in Pawnfi's lending market.