Loan Types Comparison
TL;DR : available on Twitter here
Choose the amount, low dynamic interest. No time limit, but keep an eye on FP for health.
Fixed amount and interest rate for short duration. FP doesn't matter, just repay before expiration.
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 |
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