What is Spice Finance? Spice Finance is an NFT Lending Aggregator platform that helps lenders deploy passive capital into NFT lending markets for easy returns. Let’s find out what is special about this project with Weakhand in this article.
What is Spice Finance?
Spice Finance is a platform NFT Lending Aggregator Developed on Ethereum. The platform helps lenders passively deploy capital into NFT lending markets to achieve easy returns and improve the complex and time-consuming lending process by aggregating all the above loans many NFT Lending platforms.
Spice Finance deploys Vaults also known as Spice Vaults. Users deposit into Spice Vaults to earn continuous returns through underwriting NFT loans.
Currently there is only one Spice Vaults active on the platform Prologue Vault. To be eligible to participate in the Prologue Vault, users need to own at least 1 NFT in the 555 collection Prologue NFT. People can buy these NFTs on OpenSea or Blur according to the link I have attached.
Prologue Vault runs a medium-risk lending strategy that gives users instant access to diverse NFT lending yields across multiple platforms.
Users deposit wETH tokens into Prologue Vault, the deposit is then sent by Spice Finance to NFT Lending platforms such as: NFTfi, Arcade, X2Y2, BendDAO and DropsDAO to earn profits for users.
If for some reason, the NFT mortgaged by Spice Finance is liquidated. Spice Finance has 2 solutions as follows:
For P2P markets ( NFTfi, Arcade and X2Y2): Spice’s liquidation engine is triggered when borrowers default on their P2P loans. Then:
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Spice will list the collateralized NFT to all available Marketplaces (OpenSea, LookRare, etc.) with a return value of 1.1x of the defaulted loan.
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If the bid is at or above that price, Spice will accept the bid and liquidate the assets.
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Otherwise Spice will continuously relist the NFT at 99% of the previous listing price every 3 hours until the NFT is sold.
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Revenue earned from the liquidation event is redistributed to users in the Spice Vault.
For P2Pool markets (BendDAO, DropsDAO):
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Platforms BendDAO, DropsDAO liquidate collateralized NFTs through auction.
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The proceeds from the liquidation event go back to the LP vaults involved (one of which is Spice).
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Spice receives funds from the liquidation event and redistributes it to users in the Spice Vault.
What is the Difference of Spice Finance?
In the future, Spice Finance aims to develop some more products such as:
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Prologue Leverage: An exclusive benefit for Prologue NFT holders allows them to leverage to increase the amount of interest earned on their Prologue Vault.
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Flagship Vault: Users can deposit wETH tokens into the Vault to earn profits and do not need to hold Prologue NFT.
Core Team
Update…
Investor
October 27, 2022: Spice Finance announced the successful call for $1.7M led by Shima Capital with the participation of many other investors such as: ProtoFund, Nxgen, Origin Protocol, …
Tokenomics
Update…
Information Channel of Spice Finance Project
- Website: https://www.spicefi.xyz/
- Twitter: https://twitter.com/spice_finance
- Medium: https://medium.com/@spicefinance
- Discord:
summary
Spice Finance helps users optimize deposits from lending solutions on NFT Lending platforms without having to face difficulties and hassles in the lending process. Hopefully this article has helped everyone gain useful knowledge about Spice Finance.