Excited to introduce a new project I’ve been working on @DefragFinance🧮 As native Web3 assets proliferate, they will require an intricate yet fluid relationship between DeFi and NFTs. We believe Web3 will manifest itself by leveraging these two components. Learn more 👇
Introducing DeFrag, a decentralized non-custodial liquidity market protocol where borrowers can use NFT assets as collateral. https://t.co/CZEHYEjg9M https://t.co/5HW9PVQY3q
November 19th 2021
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Our core beliefs
We are spending more of our lives online. As global citizens of the internet, we must have two fundamental building blocks — financial sovereignty through DeFi and digital private property through NFTs. We believe Web3 will manifest itself by leveraging these two components. As native Web3 assets proliferate, they will require an intricate yet fluid relationship between DeFi and NFTs.
Who we are
Introducing DeFrag, a lending protocol for NFT owners to access instant liquidity. DeFrag allows you to use your NFTs as collateral. We rank the creditworthiness of your NFTs based on several factors to determine your collateral ratio.
Why we are different
The protocol automatically insures your NFT assets with a financial instrument called a Put Option. In other words, to receive a loan against your NFTs, the protocol purchases insurance on your behalf via Put Options.
Peer To Pool
DeFrag uses a Peer To Pool model which allows for borrowers to get instant liquidity on their NFT assets without having to wait for a counter-party to enter into a contract. Underwriters provide liquidity and earn premiums through the insurance fees collected from the sale of Put Options.
Raising the Underwriting Pool via Minting our Metamatician NFTs
In order to provide a frictionless borrowing experience, the protocol needs to raise liquidity to jump-start the liquidity pool that will underwrite the loans.
This is why we created the Metamatician NFT.
Metamaticians are randomly generated NFTs based on famous mathematicians. Minting proceeds will be deposited into the initial NFT underwriting pool giving each Metamatician a proportional stake in the LP. Subsequently, the NFT will be generating fees that are collected from the sale of Put Options (insurance on your NFTs).
In phase one, 3,141 Metamaticians will be available to mint for a set price of 1.618 ETH each and serve as an entry ticket into the DeFrag universe of NFT collateralized loans.
Each Metamatician features unique attributes including the name of a famous mathematician, a randomly generated 8 digit number, and a greek symbol associated with risk in pricing out financial instruments.
DeFrag has integrated Chainlink Verifiable Random Function (VRF) on the Ethereum mainnet. By integrating the industry-leading oracle solution, DeFrag now has access to a tamper-proof and auditable source of randomness required to assign attributes to Metamatician NFTs during the minting process in a fully transparent and unpredictable manner. Through Chainlink VRF, we can help ensure participants have a fair and equal chance at obtaining NFTs with the rarest traits.
The 8 Digit Number | Pi π
The randomly generated 8 digit number is your place in the number Pi following the decimal.
The proximity of your number to “3” will determine the rarity of your NFT. Which in turn will boost your abilities in our financial ecosystem. A few examples include improving your collateral ratio in other words the ability to borrow more. Another example is increasing your stake in a liquidity pool.
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