Loan Types Comparison

TL;DR : available on Twitter here

• Perpetual loans:

Choose the amount, low dynamic interest. No time limit, but keep an eye on FP for health.

• Flip loans:

Fixed amount and interest rate for short duration. FP doesn't matter, just repay before expiration.

• Bonds (higher LTV loans):

Higher loan to value (LTV) and lower fixed Interest for short duration. FP doesn't matter, just repay before expiration.

Comparing Perpetual loans, Flip loans and Bonds (higher LTV loans)

PERPETUAL LOANS	FLIP LOANS	BONDS (HIGH LTV LOANS)
Peer-to-pool	Peer-to-pool	Peer-to-peer
No expiration period: loan can last forever if kept healthy	Fixed expiration: up to 7D or 14D. But borrower can repay earlier	Fixed expiration: up to 7D or 14D. But borrower can repay earlier
Custom LTV: between 0% and 40%, picked by user at the time of loan	Fixed LTV: between 20% and 50% on a per-collection basis	Custom LTV: between 40% and 100%, picked by user at the time of loan
Variable interest rate: based on utilization of lending pool throughout the loan's lifetime (accruing every second)	Fixed interest rate: based on utilization of the lending pool at the time of loan	Fixed Interest rate : based on the cheapest offers from lenders for the chosen LTV %
Linear fees accrual every second	Linear fees accrual every 24H	Nonlinear fee accrual
Borrower can pay (part of the) Interest anytime	Borrower pays the Interest when repaying his loan	Borrower pays the Interest when repaying his loan
1% upfront fee at loan creation	No upfront fee at loan creation	Up to 2% upfront fee at loan creation
Default and liquidation can occur if the loaned NFTs floor price drops below the health threshold land is not repaid within the 12h grace period	Default and liquidation can only occur by not paying back within the period	Default and liquidation can only occur by not paying back within the period. Lender has option to get defaulted collateral instead of SOL for fully funded loans
Real time discord alerts warn of imminent default (24H in advance) and executed liquidations	Real time discord alerts warning of loan expiry (24H in advance) and executed liquidations	Real time discord alerts warning of loan expiry (24H in advance) and executed liquidations