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Earn interest on the collateral
Another really cool feature about the V2.0 is that you don't need to bear the opportunity cost on the collateral as a borrower anymore.
The problem with the current V2.0 is that it only supports overcollateralized leasing, therefore, you as a borrower, oftentimes need to deposit collateral that is worth at least the initial value of the NFT you aim to borrow.
Although we will support undercollateralized leasing for some NFTs whitelisted in V3, to solve the problem that exists in the current version, we will send the borrowers' DAI collateral to AAVE protocol to earn interest, and the interest will be redistributed to borrowers monthly.
To be eligible for collateral interest, you need to deposit at least 20 Dai collateral during a specific month, and the interest redistribution is based on your actual leasing time in that particular month.
Last modified 10mo ago
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