What is Taker Protocol? Taker Protocol is a decentralized NFT Lending platform that helps users improve capital efficiency by using their NFTs as collateral. So what’s special about this project? Let’s find out with Weakhand in this article.
Before jumping into the article, you can learn more about some of the following projects to better understand the NFT Lending segment.
What is Taker Protocol?
Overview of Taker Protocol
Taker Protocol is a decentralized NFT platform deployed on the Ethereum platform. For NFT holders, they can use their NFTs as collateral to borrow instant liquidity on Taker Protocol. Meanwhile, for lenders, they can lend their ETH to earn passive income.
Taker Protocol also allows users to use multiple NFTs as collateral. Additionally, Taker Protocol classifies NFTs into two lending groups including: Blue Chip NFT and Growth NFT Based on collateralized NFTs, lenders have many choices as well as calculate the level of risk when lending.
Taker Protocol was developed to solve the following 4 problems:
- Unmet demand for NFT lending: Although NFTs are currently quite popular, many NFT holders are mainly focused on bullish speculation activities. Meeting lending demand for NFTs is important as it can contribute significantly to price stability. This is why Taker Protocol was created.
- Unresolved lending demand for non-blue-chip NFTs: Current NFT Lending platforms mainly focus on high-priced blue-chip NFTs. However, there is a much greater demand for lending services for non-blue-chip NFTs. Taker Protocol is trying to balance the issues of risk and meet lending demand for a variety of NFT assets, going beyond the blue-chip asset sector.
- Limited collateral options: When it comes to borrowers, assessing their ability to repay debt is paramount. For borrowers using multiple collateral, Taker Protocol looks at their overall repayment ability. This helps minimize the possibility of liquidations based solely on the price fluctuations of a specific NFT collection.
- Ineffective liquidation process: Some current NFT Lending platforms still rely on an auction-based liquidation process, which may not be optimal in terms of capital efficiency. Taker Protocol allows direct liquidation of unhealthy collateral from borrowers, ensuring safety for lenders.
Mechanism of action of Taker Protocol
The operating mechanism of Taker Protocol takes place according to the following steps:
Step 1: Lenders deposit their ETH to the Taker Protocol platform to earn passive income. They can choose to deposit their ETH into Pool Blue Chip NFT for safer returns, or prefer higher risk and return, they can deposit into Pool Growth NFT.
Step 2: Borrowers in Taker Protocol deposit their NFT assets into suitable Pools to receive loans instantly. They can use mixed collateral to increase loan value as well as reduce liquidation risk.
Step 3: The borrower can repay the loan at any time to get the collateral back.
Sale: Taker Protocol uses the Health Level index to calculate the risk level of the loan. When this index falls below the liquidation threshold, all of the borrower’s collateral will be liquidated.
What is the difference between Taker Protocol?
Taker Protcol offers many features and solutions for users using the platform. Some outstanding features include:
- Instant loan: Taker Protocol provides instant loans, requiring only the borrower to deposit collateral into the platform to be able to borrow an amount of ETH immediately.
- Lending against non-Blue-chip NFTs: Taker Protocol supports a wide range of non-Blue Chip collateral providing broad access to a wider user base.
- Risk isolation: To ensure risk isolation, ETH provided by lenders is not shared between Pool Blue Chip NFT and Growth NFT. Additionally, Pool Growth NFT also has different interest rate parameters compared to Pool Blue Chip NFT.
- Mixed collateral: Although the Blue Chip NFT Pool and Growth NFT have separate collateral pools, within each Pool the collateral can be mixed. For example: Users can use collateral of both BAYC and MAYC in the same loan in the blue-chip NFT Pool.
Investor
September 20, 2021: Taker Protocol announced the successful raising of $3M USD led by Electric Capital. There is also the participation of other investors such as: Dragonfly, Spartan, The LAO, DCG,…
Core Team
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Tokenomics
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Information Channel of Taker Protocol Project
- Website: https://www.taker.xyz/
- Twitter: https://twitter.com/TakerProtocol
- Discord:
summary
Taker Protocol offers many benefits to NFT holders when supporting non-NFT Blue Chip loans. This makes Lending solutions for NFTs accessible to more people and brings more people to the Taker Protocol platform. Above is all the information I want to introduce about Taker Protocol. I hope everyone has received useful knowledge.