Taker is a decentralized NFT lending protocol. For NFT holders, they can instantly borrow on the Taker Protocol, and for lenders, they can lend their funds on the Taker protocol to earn long-term returns.
Taker categorizes NFTs into Blue Chip NFT and Growth NFT lending pools based on their risk profiles, allowing fund providers to choose different lending pools based on their risk and return preferences.
The Blue Chip Pool and the Growth Pool in Taker are separate pools that cater to different types of NFTs. They operate independently, with distinct sets of lenders and borrowers.
The Blue Chip Pool focuses on established and high-value NFT collections, offering competitive interest rates and lower risk due to the stability of these blue-chip assets. On the other hand, the Growth Pool includes emerging and promising NFT collections, which may carry a higher interest rate to reflect the associated risks and potential for growth.
The separation of these pools allows borrowers and lenders to choose the pool that aligns with their preferences, risk tolerance, and investment goals.
To increase the borrow limit in Taker, borrowers must first select either the Blue Chip Pool or the Growth Pool based on their risk appetite and preferences.
Borrowers can deposite supported NFTs in each pool as collateral. By adding eligible NFTs under the chosen pool, borrowers can enhance their collateral value and thereby increase their borrowing capacity within that pool. It's important for borrowers to carefully assess their risk tolerance and select the appropriate pool accordingly, as the Growth Pool may require higher interest rates.
It's important to note that the NFT assets in the Growth Pool are more susceptible to liquidation due to their higher price volatility.
In Taker, the assets supplied by lenders are stored within the lending pool smart contract on the blockchain. These assets are held securely within the decentralized protocol and are not controlled by any individual or centralized entity. The lending pool acts as a collective pool of assets contributed by lenders, which are then utilized to facilitate loans to borrowers.
The smart contract ensures the transparent and auditable management of the supplied assets, with predefined rules and protocols governing their usage. The assets remain under the control of the lending pool until they are withdrawn by lenders or used to facilitate loans. This decentralized storage mechanism provides increased security, immutability, and transparency for the supplied assets, allowing for trustless interactions within the Taker protocol.
In Taker, the collateral assets may be liquidated under certain circumstances to protect the lenders and the stability of the lending pool. The liquidation process occurs when the value of the collateral falls below a certain threshold (health level <100%) . If this ratio is breached, your collateral assets will be automatically liquidated to repay the outstanding loan and any accrued interest.
It's important to note that the specific liquidation conditions and procedures may vary depending on the lending pool and the type of collateral involved. Taker employs a mixed collateral model, where multiple NFT assets can be used as collateral, reducing the risk of liquidation due to the price decline of a single NFT. However, it is still crucial for borrowers to closely monitor the value of their collateral assets and ensure they meet the required maintenance margin to avoid liquidation.
Taker is a decentralized NFT lending protocol. For NFT holders, they can instantly borrow on the Taker Protocol, and for lenders, they can lend their funds on the Taker protocol to earn long-term returns.
Taker categorizes NFTs into Blue Chip NFT and Growth NFT lending pools based on their risk profiles, allowing fund providers to choose different lending pools based on their risk and return preferences.
The Blue Chip Pool and the Growth Pool in Taker are separate pools that cater to different types of NFTs. They operate independently, with distinct sets of lenders and borrowers.
The Blue Chip Pool focuses on established and high-value NFT collections, offering competitive interest rates and lower risk due to the stability of these blue-chip assets. On the other hand, the Growth Pool includes emerging and promising NFT collections, which may carry a higher interest rate to reflect the associated risks and potential for growth.
The separation of these pools allows borrowers and lenders to choose the pool that aligns with their preferences, risk tolerance, and investment goals.
To increase the borrow limit in Taker, borrowers must first select either the Blue Chip Pool or the Growth Pool based on their risk appetite and preferences.
Borrowers can deposite supported NFTs in each pool as collateral. By adding eligible NFTs under the chosen pool, borrowers can enhance their collateral value and thereby increase their borrowing capacity within that pool. It's important for borrowers to carefully assess their risk tolerance and select the appropriate pool accordingly, as the Growth Pool may require higher interest rates.
It's important to note that the NFT assets in the Growth Pool are more susceptible to liquidation due to their higher price volatility.
In Taker, the assets supplied by lenders are stored within the lending pool smart contract on the blockchain. These assets are held securely within the decentralized protocol and are not controlled by any individual or centralized entity. The lending pool acts as a collective pool of assets contributed by lenders, which are then utilized to facilitate loans to borrowers.
The smart contract ensures the transparent and auditable management of the supplied assets, with predefined rules and protocols governing their usage. The assets remain under the control of the lending pool until they are withdrawn by lenders or used to facilitate loans. This decentralized storage mechanism provides increased security, immutability, and transparency for the supplied assets, allowing for trustless interactions within the Taker protocol.
In Taker, the collateral assets may be liquidated under certain circumstances to protect the lenders and the stability of the lending pool. The liquidation process occurs when the value of the collateral falls below a certain threshold (health level <100%) . If this ratio is breached, your collateral assets will be automatically liquidated to repay the outstanding loan and any accrued interest.
It's important to note that the specific liquidation conditions and procedures may vary depending on the lending pool and the type of collateral involved. Taker employs a mixed collateral model, where multiple NFT assets can be used as collateral, reducing the risk of liquidation due to the price decline of a single NFT. However, it is still crucial for borrowers to closely monitor the value of their collateral assets and ensure they meet the required maintenance margin to avoid liquidation.
