OpenSky Finance is the first hybrid NFT lending and borrowing protocol powered by Aave, offering peer-to-pool instant loans and peer-to-peer bespoke loans. It enables borrowers to seamlessly switch between these two types of loans in a single transaction.
OpenSky has innovated a discrete time-based liquidation (DTBL) mechanism that dramatically improves borrower UX while simultaneously cutting the risk of bad debt because of the discrete nature of the loans being made across time. In other words, only some of the loans may face liquidation at any single point in time.
OpenSky Finance is integrated with aave.com which means lender deposits are passed directly to aave.com's battle-tested smart contracts and lenders earn passive income from aave and earn interest from Instant loan borrowers with 100% capital efficiency.
OpenSky Finance is the first NFT lending protocol that integrates peer-to-pool and peer-to-peer lending functions which means lenders can use their Instant EARN pool deposit tokens (oTokens) to make or accept peer-to-peer (Bespoke) loan offers to earn more if a Bespoke offer is executed. If no Bespoke loans are made, the lenders will still earn continuously from the Instant EARN pool.
Lender use cases
Instant EARN deposits pass directly to Aave V2.0 money market, lenders earn from Instant borrowers and earn from Aave.
Guarantors have exclusive rights to Guarantee all Instant loans and can acquire Blue Chip NFTs at a steep 60% discount to the initial floor price at the end of a given 30-day loan term. For example, if the floor price is 100 ETH on November 1st when an Instant loan was made, if on December 1st the borrower had defaulted, the guarantor will own the NFT at a net cost of only 40 ETH.
Lenders can use pool deposits (oTokens) to make or accept Bespoke loan offers to earn more and, if the borrower doesn’t repay, can acquire the pledged NFT at a very attractive discount.
Borrower use cases
NFT holders can stake their Instant loan collection whitelisted NFTs(see all here) as collateral to take out a loan for 40% of the floor price. If the borrower wants to borrow more or has an NFT that is part of the Bespoke collection whitelist (see all here), they can make or accept Bespoke peer-to-peer loan offers.
Stake your NFT to take out a loan instantly, you can extend your loan before the due date or claim your NFT at any by repaying the loan and interest due.
Make or accept a Bespoke offer. You can get you NFT back any time by repaying your loan, or if you fail to repay the loan on time, the NFT will transfer to the Bespoke lender.
Borrowers can conveniently and flexibly switch from their Instant loan to a Bespoke loan or from a Bespoke offer to another more attractive Bespoke loan offer at any time using our flash loan-enabled reFinance function. This reFinance function can be very helpful to a lender who is currently unable to repay their loan but they can get more time to solve their liquidity issue.
If you still have any questions or issues, feel free to reach out to the OpenSky team over the live chat within the app or in the discord.