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How OpenSky Works?
OpenSky Finance is the first NFT lending protocol to offer both peer-to-pool (instant loans) and peer-to-peer loans (Bespoke loans).
Lenders deposit their ETH or USDC into an OpenSky EARN vault and start earning AAVE deposit income and Instant loan interest immediately. The deposits can be withdrawn anytime. No specialized NFT knowledge is required to earn safe and capital-efficient passive income.
Borrowers stake their whitelisted collection NFTs, such as BAYC, and can borrow instantly based on a percentage of the floor price. The loans have a fixed interest rate and due date and can be repaid early without penalty. OpenSky is the first NFT lending protocol to offer peer-to-pool loans with no liquidation risk based on the NFT floor price. The borrower can not be liquidated unless they fail to modify or repay their loan by the expiry of the grace period (initially set to 48 hours subject to DAO vote) at the end of the predetermined loan term.
Borrowers can make a loan offer for an NFT that is not on the Instant loan whitelist or for a high value NFT (such as Alien Punk) that is part of a whitelisted collection, such as CryptoPunks. Initially, only certain NFT collections will be whitelisted for Bespoke loans, but later this will be opened up to DAO voting. Lenders select the desired borrow amount, term, and APR.
Lenders can see the listed Bespoke loan offers and use their Aave pool deposits to accept offers on a first-come, first-served basis. This is highly capital-efficient because the pool deposits keep earning until a Bespoke offer is made. Also, when a Bespoke loan is repaid, the funds are paid back to the Aave pool and the lenders start receiving the Instant loan income without interruption.