Defi4 dapp is an NFT collateralizing app on Algorand. Powered by circle digital money, which let's you use any NFT you hold in Algorand as leverage for borrowing stable coin in Defi4. Leveraged NFT remains locked in your (borrower) address until the full loan amount is repaid, which is a pure non-custodial transaction. Assets(NFT) that require KYC or special permissions might benefit from this pure non-custodial protocol.
With a 3% return for liquidity providers that supply liquidity to the protocol, Defi4 becomes the go-to site for delivering liquidity for NFTs. Liquidity providers will keep their liquidity asset in their account until a borrower uses it, at which point the protocol will reward them with an I-O-U stable-coin token plus 3% of the lent amount.
First step is to optin to the smartcontract.
Transfer your NFT's admin address to Defi4. This will make your NFT leverageable for taking loan in Defi4 dapp.
- This sets manager and freeze admin address to Defi4 smartcontract
- And sets clawback to liquidator smartcontract
Optin to the I-O-U token of Defi4 dapp dUSD, that has 1:1 value with USDCa. This happens automatically when you create a promise to provide liquidity, via the frontend.
Choose which NFTs can borrow from your account.
- Set maximum amount you are willing to lend.
- Set expiration date for aggrement.
Use your NFT as collateral, to borrow USDCa stablecoin.
- Set which NFT you want to collateralize
- Set amount of collateral
- Request loan You'll get requested loan amount in USDCa and your NFT will be locked.
Send USDCa to Defi4 contract. Your loan amount state will be decremented by sent repaid amount.
If you pay the full loan amount, your collateral assets will be unfrozen.
Send dUSD(I-O-U token of Defi4 contract) to Defi4 contract. You'll receive a 1:1 USDCa for the dUSD you send.
A fast and easy way to get fiat into our Dapp is using Circle accounts. You can either use a credit/debit card or send USDC from other chains supported by circle.
Powered by circle's bridge, we now offer wider options to users that want to interact in our pure non-custodial borrow/lend dapp. You can transfer USDC from any chain supported by circle bridge to any algorand address you want to.
- First select your circle wallet linked to an algorand address.
- Then generate a blockchain address that you'll deposite USD into and get it in the Algorand address linked to that circle wallet.
- Next send USD to the generated addresses
You will recieve the deposited amount in your Algorand address soon. For testing purposes we recommend using smaller amounts.
To create a card deposite into your algorand address, follow this steps:
- Create a circle wallet
- Name your wallet
- Select the newly created wallet or any wallet you prefer
- Then add a credit/debit card information. It is encrypted on client side, and secured as per the standards
- Add billing information for your card.
- Select your card from list of cards.
- Fill in the amount you want to charge into your algorand address, and for fraud protection fill in the
cvv. For testing all cards use123.
Then you'll get a deposit arrive in your algorand address linked to the wallet you selected within about 10 to 30 minutes.
For more, look into Techincal review.
We plan on releasing this project on mainnet.
- NFTs used as collateral are frozen in account, only when account takes out loan.
- Frozen NFTs are unfrozen when full loan is paid back.
- There is no interest rate for borrowing USDCa.
- A 3% fee is paid to take out loan.
- Lenders sign a delegated logic signature to allow any account to withdraw USDCa that fullfill the following:
- Calls Defi4 contract
- Withdraws atmost staked amount
- Any account that holds dUSD can claim 1:1 USDCa by sending the dUSD to Defi4 contract.
- Borrower can borrow from upto 4 lenders
- Liquidation
How liquidation works?
- Specify the addresss to liquidate
- Pay 95% of collateral's value to Defi4 contract
- Set an account that will receive the liquidated asset
- You'll be sent the collateral to the address you specified
There are three smartcontracts that power Defi4 dapp.
-
Defi4 Contract Defi4 contract holds the state machine and locks/unlocks NFT in account (freezes/unfreezes NFT) . State machine, tracks:
xidstracks which NFT is used as collateralcamttracks how much collateral is used for loanlamttracks how much loan is borrowedaamttracks how much loan is available from lender address
-
Liquidator Contract Liquidator contract reads current price of NFT from oracle and if loan is more than 90% of collateral it liquidates the NFT locked.
- liquidator contract is the clawback address of leveragable NFTs on Defi4.
- after liquidation completes the remainig asset is unfrozen. This is possible by AVM 1.1 (contract to contract call). Liquidator contract calls Defi4 contract to unfreeze the asset.
-
Manager Contract Manager contract creates all other contracts on behalf of creator address. It also controls the NFTs that are configured to be borrowable in DeFi4NFT.
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