Fractionalized debt portfolios for NFTs, powered by Balancer's V2 liquidity pools.
Fractionalized debt portfolios for NFTs, powered by Balancer's V2 liquidity pools.
DeedsDAO is a decentralized protocol that enables lenders of P2P NFT markets to unlock their liquidity!
Lender of P2P NFT markets will be able to supply their "Debt NFT Portfolio" a.k.a. Debt Pool to the DeedsDAO Protocol. The protocol will take their "Debt NFT Portfolio" and create a Balancer pool that will put the P2P debt NFT position on the secondary market.
Lenders creating pools get liquidity and investors get accessiblity to the P2P NFT lending/borrowing market.
We believe that the DeedsDAO protocol has potential to revolutionize P2P NFT borrowing/lending market and help bring about mass adoption of DeFi tools for NFTs. As underlying assets of NFTs grow more diverse & interest bearing, liquidity environments & secondary debt markets will grow in utilization. DeedsDAO seeks to experiment and drive adoption of new financial tools for this purpose.
The protocol consists of three main components:
The DeedsDAO smart contract will be used to hold the assets in the portfolio and to execute external smart contract transactions. The balancer portfolio management contract will be used to generate a portfolio of various "Debt NFTs position" by fractionalization and applying it to a bonding curve. Users will be able decide what exposure they would like on the portfolio. The registry contract will be used to track the fractionalized ownership and provide the potential transfer or withdrawal funds related to ownership of repaid loans or liquidated NFTs.
Check out our Gitbook
2021 Annualized lending rate for P2P Crypto Punks equated between ~ 15% and 20% (https://thedefiant.io/nft-loans-collateral-peer-to-peer-ethereum/)