Introduction to Taker Protocol
Taker is a decentralized NFT lending protocol. For NFT holders, they can instantly borrow liquidity on Taker Protocol. And for lenders, they can lend their funds on the Taker protocol to earn long-term returns. Taker provides a highly capital-efficient multi-NFT collateral lending pool, referencing the floor price of each NFT collection, allowing NFT holders to mix their various NFTs as collateral to borrow ETH. Taker categorizes NFTs into Blue Chip NFT lending pool and Growth NFT lending pool based on their risk profiles, allowing fund providers to choose different lending pools based on their risk and return preferences.
- 1.Unmet NFT lending demand: In the current cryptocurrency market, NFTs are undeniably the most popular and highly engaged assets. However, many NFT holders primarily focus on trading activities. After acquiring NFTs, they either wait for appreciation to sell them or passively endure the devaluation. Meeting the lending demand for NFTs is crucial as it can significantly contribute to price stability. This is precisely why Taker was created.
- 2.Unaddressed lending demand for non-blue-chip NFTs: Existing lending products mainly cater to blue-chip NFTs, which are highly-priced. However, there is a much larger demand for lending services for non-blue-chip NFTs. At Taker, we strive to balance risk considerations and meet the lending needs of a broader user base. Our goal is to provide comprehensive lending solutions that cater to a wide range of NFT assets, going beyond the realm of blue-chip assets.
- 3.Limited collateral options: When it comes to borrowers, evaluating their repayment capacity is paramount. Traditional Web3 lending products typically assess collateral value directly within the protocol. However, for holders of multiple NFT assets, we consider their overall repayment capacity. In the pool lending market, we enable mixed collateral options to prevent liquidation solely based on the price fluctuations of a specific NFT collection. This approach takes into account the borrowers' comprehensive ability to repay.
- 4.Inefficient liquidation processes: Some existing NFT lending products still rely on auction-based liquidation processes, which may not be optimal in terms of capital efficiency. Our goal is to provide liquidation methods that align with high capital efficiency. With Taker, we enable direct liquidation of unhealthy collateral from borrowers. While the multi-collateral approach mitigates liquidation risks, immediate liquidation requires users to consider various factors, reducing the risks for fund providers.
- 1.Instant Loans: Taker's lending pools support instant loans, where all NFTs in the Supported Collections are treated as fungible assets. The loan amount for each individual NFT is determined by multiplying the floor price of the Collection with the Loan To Value ratio.
- 2.Lending for Non-Blue-Chip NFTs: We support some great NFT assets which is non-blue-chip NFTs, but with an active community and wide awareness by the market, also known as Growth NFTs. In the future Taker token holders can vote to add or delete the NFT Collections in Growth NFT lending pool.
- 3.Risk Isolation: To ensure risk isolation, the ETH provided by lenders is not shared between the Blue Chip NFT and Growth NFT pools. Additionally, the Growth NFT pool has different interest rate parameters compared to the Blue Chip NFT pool.
- 4.Mixed Collateral: While Blue Chip NFTs and Growth NFTs have separate collateral pools, within each pool, the collaterals are mixed， e.g. your BAYC and MAYC collateral are mixed in the blue-chip lending pool. Borrowers have the flexibility to increase their collateral options to enhance their ability to withstand liquidation.
- 5.High Liquidation Efficiency: Liquidators have the ability to directly liquidate unhealthy borrowers' NFT assets, with one NFT being liquidated at a time. This approach is more efficient than auctions and incentivizes liquidators to take proactive actions.