What is Frakt Protocol? Frakt Protocol is a decentralized NFT Lending platform developed on Solana that offers users both Peer to Peer and Peer to Pool lending models. Let’s find out what is special about this project with Weakhand in this article.
What is Frakt Protocol?
Frakt Protocol Overview
Frakt Protocol is a decentralized NFT Lending platform developed on Solana that offers users both Peer to Peer and Peer to Pool lending models.
Frakt Protocol is designed to unlock expensive NFTs so that this liquidity can then be used in Defi. As a result, individuals and DAOs can:
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Unlock liquidity instantly.
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Generate sustainable output.
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Empower their communities
Objects participating on the platform:
Lender (Lender):
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Submit SOL to loan pool (for Peer to Pool loans).
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Place an Offer order in the order book (for Peer to Peer loans).
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Earn profits by providing liquidity.
Borrower (Borrower):
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Choose loans: Perpetual Loan, Flip Loan or Bond.
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Start an instant NFT loan to borrow SOL from the lending pool or order book by pledging your NFT.
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Borrower can repay the loan at any time by repaying the SOL to receive his NFTs back.
Frakt Protocol’s operating mechanism
Products on the Frakt Protocol platform:
Perpetual Loans: Borrower can borrow SOL in the Isolated lending poolsthe interest rate changes over the loan period.
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Use the Peer to Pool model.
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There is no expiration period as long as the Borrower loan is not liquidated.
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Custom LTV: from 0% to 40% chosen by the user at the time of loan.
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Borrower can refund part of the interest at any time.
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Liquidation: If the loan exceeds the value of the collateral, the loan is liquidated. Borrower has 12 hours from the time of liquidation to repay the loan, called the grace period.
Flip Loans: Borrower can borrow SOL in the Aggregated lending pool with a fixed interest rate over the loan term.
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Use the Peer to Pool model.
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Loan term: maximum 7 to 14 days but Borrower can return the loan at any time.
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Fixed LTV: From 20% to 50% on a per NFT collection basis.
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Borrower pays interest when repaying his loan.
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Liquidation: When the maturity date passes and Borrower does not repay the loan, Borrower’s NFT will be liquidated.
Bonds: Being a new loan product unlocks a number of highly competitive features, such as higher loan-to-value (LTV), lower fees.
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Use the Peer to Peer model.
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Loan term: maximum 7 to 14 days but Borrower can return the loan at any time.
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Custom LTV: From 40% to 100% chosen by the user at the time of loan.
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Borrower pays interest when repaying his loan.
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Liquidation: Borrower’s NFT is liquidated if the loan is not repaid by the maturity date. The Lender can then claim ownership of Borrower’s NFT.
What is the difference of Frakt Protocol?
Frakt Protocol’s protocol revenue and royalty revenue are used entirely to buy back FRAKT tokens (the platform’s main token) and are distributed to the community as follows:
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50% is distributed to those who stake NFT PFP (combined version of 2 NFT collections Frakts and Gnomies).
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50% is distributed to those staking FRAKT tokens.
Additionally, users can use the points on each of their accumulated NFTs to receive liquidation lottery tickets, where participants can purchase liquidation NFTs for up to 50% less than the floor price.
Core Team
In addition to developing Frakt Protocol, Timur also participates in building Hadeswap – an NFT AMM on Solana.
Vedamir Efanov : Co Founder & Defi Magician
Vladislav : Co Founder & UX Lead
Investor
Update…
Tokenomics
Basic information about tokens
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Token Name: FRAKT Token
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Ticker: FRAKT
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Blockchain: Solana
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Contract: ErGB9xa24Szxbk1M28u2Tx8rKPqzL6BroNkkzk5rG4zj
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Token Type: Utility, Governance
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Total Supply: 10,000,000,000 FRAKT.
Token Allocation
Token Release
The conversion from FRKT token to FRAKT is distributed linearly to the community within 1 year
Token Use Case
FRAKT tokens are used to:
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Voting governance on the platform.
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Staking to receive revenue from the project.
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Reduced transaction fees.
Exchanges
FRAKT tokens can be traded on Dex exchanges such as: Raydium, Orca, …
Information Channel of Frakt Protocol Project
- Website: https://frakt.xyz/
- Twitter: https://twitter.com/FraktArt
- Discord:
summary
Frakt Protocol offers users multiple approaches to both borrowing and lending. Hopefully the information I provide in this article has helped everyone gain interesting knowledge about Frakt Protocol.