What is OpenSky? OpenSky is a Lending platform for NFTs built on the Aave ecosystem with a very unique combination of P2P and P2Pool models. Let’s find out what is special about this project with Weakhand in this article.
If people do not clearly understand and distinguish between P2P and P2Pool models in NFT Lending, you can read more of these articles:
- What is BendDAO (BEND)? BendDAO Cryptocurrency Overview
- What is NFTfi? Overview of Cryptocurrency NFTfi
- What is NFTfi? The Future of NFTs in the Crypto Market
- Summary of potential projects in the NFTfi industry
OpenSky Overview
What is OpenSky?
OpenSky is a Lending platform for NFTs built on the Aave ecosystem with a very unique combination of P2P and P2Pool models.
OpenSky’s target audience is:
- Lender (Lender): Deposit your tokens to the platform and receive interest.
- Borrower (Borrower): Deposit NFT to the platform to instantly borrow 50% of the asset value or establish a loan contract with peer-to-peer loans.
OpenSky operating model
OpenSky’s operating model takes place according to the following steps:
- Step 1: Lender sends its assets (tokens) to the platform and can additionally set up a Bespoke lending mode (p2p lending) for Borrower.
- Step 2: Lender deposits will be transferred directly to Aave by OpenSky so Lender can receive both interest from Aave and OpenSky.
- Step 3: Borrower deposits NFT onto the platform to instantly borrow 50% of the asset value. OpenSky only supports instant loan mode for BAYC and CryptoPunks collections. In addition, Borrower can apply Bespoke loan mode (p2p loan) and set up a loan with Lender.
- Step 4: Once the loan is established, Borrower will receive the loan amount and must pay back the loan + interest by the due date to receive his NFTs back.
Sale: OpenSky will not liquidate based on price but liquidate over time. This means that when the loan contract between Lender and Borrower reaches maturity, Borrower is obliged to repay the loan to Lender. When the due date arrives, Borrower will have 2 days to repay the debt called the “grace” period. After this period, if Borrower does not repay the debt, OpenSky will handle it in the following two ways:
For loans from the instant loan regime: OpenSky will buy back the NFT from Borrower and transfer this NFT to the Treasury.
For loans from the Bespoke loan regime: The Lender can claim ownership of the NFT from the Borrower.
What is the OpenSky difference?
Through depositing Lender’s idle funds to Aave, Opensky enables high capital efficiency for all deposited funds. This is best demonstrated by comparing the deposit/borrow difference between OpenSky and BendDAO, one of the long-standing NFT lending protocols.
Looking at the table above, we see OpenSky has a lower deposit/borrowing APR than BendDAO. OpenSky’s spread is currently 0.26% while BendDAO’s spread is 4.42%, a difference of 4%. This implies that the average user will likely get more value out of using OpenSky than BendDAO.
OpenSky offers a fixed APY over the loan period, compared to the fluctuating APY in BendDAO and the negotiated APR in P2P lending protocols. Fixed interest rates will likely provide a better user experience by providing better predictability for both Lender and Borrower.
Development Roadmap
OpenSky has undergone a number of changes such as:
- December 27, 2023: OpenSky promises to launch Lending & Borrowing market for Bitcoin Ordinals. Besides, OpenSky also revealed the Airdrop of BRC 20 to the community.
Core Team
Update…
Investor
- OpenSky receives support and investments from Aave. There are also a number of other investors such as: FBG Capital, CollinStar,…
Tokenomics
Update…
OpenSky Project Information Channel
- Website: https://opensky.finance/
- Twitter: https://twitter.com/OpenSkyFinance
- Medium:
summary
OpenSky is the first NFT Lending project built on the Aave ecosystem and has a unique combination of P2P and P2Pool Lending models. However, there are still not many statistics on the effectiveness of the protocol, so we need to observe more in the near future.