If a liquidated NFT hasn't been repaid during its 24H Grace Period it will then automatically become eligible for the daily raffles in which Frakts stakers and Gnomies holders (later $FRKX stakers) will be able to participate
How does it work?
Raffle tickets only for Frakts stakers & Gnomies holders
The amount of Frakt points you stake (10 points = 1 ticket, rounded down per Frakt NFT) and/or the amount of Gnomies you have in your wallet (1 Gnomie = 1 ticket) defines the amount of daily raffle tickets you receive everyday.
All tickets (used or not) are burned at the end of the day
New raffle tickets are automatically redistributed every day (24h after using them)
The raffle tickets are bonded to NFTs. So, if you use a ticket from 1 NFT, this NFT will be "empty" for the next 24 hours, regardless of which wallet holds it
Participating in the raffles
Everyday you can participate in raffles as soon as there are new liquidiated NFTs to raffle
Every ticket you spend for an NFT in the raffle is like rolling a dice with a fixed probability to have a winning ticket
At some point someone picks a winning ticket which enables its ownerto buy the liquidated NFT at loan value + interest rate (on average at around 50% from current floor price)
The raffle just continues until the NFT is claimed by that winner or by another winner
The above mechanisms implies that there will be several winners per raffle. The logic of this approach is to increase the probability that the liquidated NFT will be bought back as fast as possible (as a single winner could win the raffle but not be interested in buying the specific NFT, even at a discount compared to floor price)
The raffle mechanism incentivises holders to use our app daily as only active users/holders actively participating in the raffles will be eligible to winning tickets