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  • Supply
  • Withdrawals
  • Borrowing
  • Interest Rates
  • Liquidations
  • Risk Assessment Framework
  • Contract Addresses
  1. Protocol

Pools

PreviousRedemption MechanicNextNFT Index Token

Last updated 5 months ago

The Fungify Lending Pools, originally intended as a solution to the problem of creating lending liquidity for 🖼️ borrowers, function as a fully general solution to the rest of NFT DeFi, allowing NFT shorting, cross-margined NFT collateralized loans, and lending yields on NFTs.

Supply

The lending pools accept NFTs along with ETH, USDC, DAI, stETH, wBTC, $NFT, and USDT as supplyable assets. When an asset is supplied, it is automatically used as collateral and contributes to a user’s Borrow Limit. The degree to which any given asset contributes to the Borrow Limit is determined by the asset’s Collateral Factor (CF). Assets that are more liquid and less volatile have higher collateral factors and therefore contribute more toward the Borrow Limit. A full accounting of each asset, its collateral factor, and its attendant risk parameters can be found in the Risk Assessment Framework section.

When an asset is supplied, the user receives a corresponding fToken whose exchange rate always increases against the underlying in proportion to interest accrued. An exception to this is supplied NFTs, which accrue fUSDC as interest.

Withdrawals

When an NFT is supplied, it allows others to borrow it while the supplier earns interest in the form of USDC. The trade-off is that the protocol does not guarantee that an asset with the same NFT ID will be withdrawn once a user has finished supplying it. A concrete example: if a floor Cryptopunk is supplied and borrowable, and the user withdraws the Cryptopunk, then they will receive a random Cryptopunk from the lending pool rather than the one they deposited.

Borrowing

Once a user has supplied assets, they may borrow against them up until the Borrow Limit. If the assets supplied as collateral are NFTs, then USDC must also be supplied in order to facilitate interest payments. If the amount borrowed exceeds the Borrow Limit, the collateral is auctioned off until the user account is solvent. If USDC supplied drops to zero while borrowing NFTs against NFT collateral, the collateral asset is sold and the loan closed. To close the loan, the user may repay the principal using any NFT from that collection.

While an asset is used as collateral, its corresponding fToken cannot be transferred or moved from the wallet taking out the loan.

Interest Rates

Each asset has its own interest rate market, with rates determined by the utilization of free liquidity. As demand for supplied assets increases, borrowers pay proportionately higher interest rates (and vice versa). Interest is accrued each block, which increases the exchange rate of fTokens relative to the underlying. Interest accrues to NFT suppliers by incrementing upwards their balance of fUSDC; this is proportional to the reduction of the fUSDC balance of NFT borrowers.

Liquidations

When an account’s borrowing exceeds its borrow limit, a liquidator can seize the account’s collateral at a discount in exchange for repaying the principal. The amount of collateral that can be seized is related to the asset’s Close Factor. The size of the discount is determined by the Liquidation Incentive. In the case of ERC20 assets, this incentive is modest (8%) and in line with other lending protocols. In the case of ERC721s, the discount is equal to the remaining value of the NFT. This is a consequence of NFTs being indivisible, unlike ERC20s.

Liquidators can liquidate multiple assets simultaneously, which may sometimes be necessary when an account is collateralized across a mix of ERC20 and ERC721 assets.

Risk Assessment Framework

Each asset has a collateral factor, liquidation incentive, and borrow cap. These factors are based on the volatility and liquidity of the asset.

Asset

Collateral Factor

Borrow Cap

DAI

0.85

N/A

ETH

0.85

N/A

sUSDe

0.85

N/A

USDC

0.85

N/A

USDe

0.85

N/A

USDT

0.85

N/A

wBTC

0.85

N/A

wstETH

0.85

N/A

NFTs

Azuki

0.65

100

BAYC

0.65

100

Bit Bears

0.50

N/A

CloneX

0

N/A

Crypto Punks

0.65

100

Doodles

0.40

100

Honey Comb

0.30

200

Lil Pudgys

0.60

250

MAYC

0.65

200

Pudgy Penguin

0.65

150

Sappy Seals

0.45

100

Contract Addresses

Contract Name
Contract Address

Comptroller

Oracle

fDAI

fETH

fsUSDe

fUSDC

fUSDe

fUSDT

fwBTC

fwsETH

fAZUKI

fAZUKI_NB

fBAYC

fBAYC_NB

fBITB_NB

fCLONEX

fPUNKS

fPUNKS_NB

fDOODLES

fDOODLES_NB

fHONEYCOMB

fHONEYCOMB_NB

fLILPUDGYS

fLILPUDGYS_NB

fMAYC

fMAYC_NB

fPPG

fPPG_NB

fSAPS

fSAPS_NB

💧
NFT Index Token
https://etherscan.io/address/0xf9c70750bF615dE83fE7FF62D30C7faACD8f8Ba0
https://etherscan.io/address/0x9b960808875000AC17dfAE13B72BBDF69DF6e7A7
https://etherscan.io/address/0xDF2585D99d6Eff84eE3A0c56140196b70406FE56
https://etherscan.io/address/0x70C4F75ebaF99e24d775C91867b1a844da6eF6FD
https://etherscan.io/address/0x2b142208e665525952786c6e77cbA0cB2E694b41
https://etherscan.io/address/0x5F86F598e4Fa983097fe6693a1b51F047d87b9Cf
https://etherscan.io/address/0x1c6ecFfAd93117FdF0B11fAF0733A796185673f3
https://etherscan.io/address/0xf0BB06816f081829726Bd6d3d04c823cE3e96B6
https://etherscan.io/address/0x08A02ce47E3809b8A571f9695224b243F4e1A256
https://etherscan.io/address/0xfb973b5cd8D18EB514aa19a35aFdE689f5BA04e3
https://etherscan.io/address/0xcF4825Fc274Fef983a2D8744751Fb41D9125e31b
https://etherscan.io/address/0x842FDFF053E916782B39bffB58dE94F4B47D5Df4
https://etherscan.io/address/0xa603Cee4fD20C589B5aECbf07356B239cb11Ee5a
https://etherscan.io/address/0x8a81BeD57DD024aA097266b19BdeCd098C20375B
https://etherscan.io/address/0x5778DCe055cf595185264c03497A1FFf07d9Dae0
https://etherscan.io/address/0xF60a1c0a25F51b060522806e64364bd021755297
https://etherscan.io/address/0xBF1C1370cC5a96AF40499502F8D5Ec9403e0a18A
https://etherscan.io/address/0xA4B52E1347b852331c12a8Dad69EEC56A40aFF7f
https://etherscan.io/address/0x72e96354af32CaE18e5B43F16f229bB713b96277
https://etherscan.io/address/0x68aDBe25C979fa47efBd390DcCdC165b966aE293
https://etherscan.io/address/0xe0b0a19f749c6054d6412591b799b04107fe69f3
https://etherscan.io/address/0xEb058A3Dc3c969359a3fA72aC3B9c181cfCF468c
https://etherscan.io/address/0xe07dcb815c0B7a948e41a7d8A104191dE314dCAF
https://etherscan.io/address/0xE2B76Da8899f861d10103eaDBEa95685e2450697
https://etherscan.io/address/0xbE7FA0EA83b412509fc0DDf195559c12C59208db
0xF038Cc2eA343997EC976B5ED640B58FEB027e388
https://etherscan.io/address/0x0aeb0fBb880e0ab702Dd981ae091D272A966B54B
https://etherscan.io/address/0x8c03492922f4aeA5Dde51b0b8eCac2D941bd9851
https://etherscan.io/address/0x3b37c50b237d12aefdc48d14f63dc3009ba35155
https://etherscan.io/address/0x6d6368bf559052cF4660aC5eB934874D80c18EbF