- DefiLIamba founder announces new protocol by the name “LlamaLend”.
- It will allow users to NFT holders to deposit their NFTs and borrow funds.
- The protocol aims to solve the liquidity issues of NFTs.
0xngmi has recently announced the completion of his NFT lending protocol on Twitter. He is the anonymous creator of the decentralized finance (DeFi) project aggregator DefiLlama.
The founder now is looking forward to launching an NFT lending protocol named LlamaLend.
finally finished the llamalend contracts and will be launching it soon— 0xngmi (grazing arc) (@0xngmi) October 9, 2022
anyone interested in trying to break them?https://t.co/qfbFXOPbT6
The NFT community has been struggling with its liquidity problem for a long. By launching an efficient lending protocol, 0xngmi envisions resolving the issue for common NFT holders.
LlamaLend will allow users to deposit their NFTs, get a price attestation and borrow ETH up to the 1/3rd value of the NFT’s floor price.
The project’s LlamaLend GitHub page says,
If a holder needs liquid money because a good opportunity has appeared, all they can do [now] is just sell their NFTs.
The best thing is that users can repay the loan anytime they want. Based on the time they take to repay the loan, its interest rates will be decided.
0xngmi explains that the LlamaLend pools won’t have an automatic or in-built liquidation system. It is the NFT holder who holds the power to decide how to manage a bad debt situation. He can go for an NFT auction or extend the repayment period.
However, he mentions that there will be a late fee which will increase by 100% of the borrowed amount on every deter repayment.
The NFT lending protocol will use an oracle system that will determine the NFT borrow price.