What is DeFrag? DeFrag is a decentralized lending platform on Arbitrum where users can use NFTs as collateral to borrow an amount of USDC instantly. Let’s find out what is special about this project with Weakhand in this article.
What is DeFrag?
DeFrag is a decentralized lending platform on Arbitrum where users can use NFTs as collateral to instantly borrow USDC.
DeFrag’s goal is to help improve liquidity for NFT collections of games across the Treasure ecosystem. Currently, DeFrag is supporting Bridgeworld and Smolverse NFT collections as collateral.
Supported DeFrag collateral
DeFrag uses the model Black Scholes in its lending protocol. When a borrower pledges NFT to borrow USDC, DeFrag buys a pass-through insurance Put Options (put option) then the premium is the borrower’s APR.
Subjects participating in using the DeFrag platform:
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Borrower (Borrower): Pledge your NFT to borrow a corresponding amount of USDC.
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Lender (Borrower): Lender is actually more complicated than other Lending platforms, I will explain through the following image.
Mechanism to become a Lender on DeFrag
To become a Lender on DeFrag, users must deposit ETH into the platform to mint 1 NFT Metamatician, this NFT represents the user’s stake in the Pool. Lender Stake Metamatician NFTs into the Pool to receive interest from Borrower. In addition, they can also participate in governance on the platform.
Liquidations: If the loan-to-value ratio reaches 83%, the NFT collateral will be liquidated and the user has 24 hours to repay the loan or add more collateral to bring the LTV ratio below 83%.
If LTV is still above 83% after 24 hours: The liquidator will purchase the liquidated NFT and the proceeds from USDC will be used by DeFrag to repay the borrower.
What is the DeFrag Difference?
Users can use NFTs as collateral without affecting in-game activities.
For example: Users who use an NFT in the Legion Genesis Rares collection as collateral on the DeFrag platform will have no influence in using this NFT in activities on Bridgeworld.
DeFrag uses the community to the fullest extent when establishing DeFragDAO for activities and development orientation on the platform.
Core Team
Nodar Janashia: Co Founder
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He graduated from Fordham University with a major in applied accounting and finance.
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He has worked at PlanGuru as sales director since September 2013.
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In 2015, he became the CEO of CountUp.io – a platform for businesses to find and work with a licensed accountant online.
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In 2019, he decided to branch into the crypto market and is currently Co Founder of the two platforms Zapper and DeFrag.
Igor Yuzo: Co Founder
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He has been a consultant for CountUp.io since July 2015.
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In February 2018, he joined Strategic Wealth Management Group and assumed the position of Portfolio Manager.
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In January 2022, he decided to quit his job and is currently Co Founder at DeFrag.
Alex Hint: Co Founder & CTO
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He graduated with a degree in Marketing from Zicklin School of Business.
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He has worked at Betterment as a software engineer since July 2017.
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In February 2022, he joined DeFrag and currently holds the position of CTO at DeFrag.
Investor
Update…
Tokenomics
Update…
DeFrag Project Information Channel
- Website: https://defrag.fi/
- Twitter: https://twitter.com/DeFragDAO
- Medium:
summary
DeFrag is an NFT Lending platform however the focus is on NFTs on Gamefi platforms. This is a novel direction that helps optimize the efficiency of players’ capital use. Above is all the information that I introduced to everyone about DeFrag. I hope everyone has useful information when reading this article.
