Why choose FRAKT

What are the advantages of the FRAKT protocol?

For Borrowers

āœ… Instant liquidity so no need to wait for the loan being opted into by a unique lender

āœ… Very low fees via linear fees accrual for Flip loans and Perpetual loans so borrowers can open and close loans as they want. The shorter the duration of the loan the lower the fees.

āœ… Different durations : flexibility for users to use Flip loans or Bonds (up to 7-14 days expiration) or Perpetual loans (no expiration)

āœ… 12H Grace period for borrowers so they have a last chance to repay their debt

āœ… Discord notifications that sends reminders and alerts about their loans

āœ… Free or discounted Flip loans for Frakts and Gnomies holders (see holder benefits) āœ… Bulk loans to further improve UX

āœ… High LTV and low fees for Bonds (higher LTV loans)

āœ… Staking integration : unlock liquidity from your @DeGodsNFT AND keep accumulating $DUST as explained here

šŸ”œ Buy Now Pay Later feature enabling Mortgages

šŸ”œ Refinance/extend loans

šŸ”œ Sell active loans (without the need to repay it)

šŸ”œ Expand staked loans to other collections

For Lenders

Using lending pools

āœ… Yield starts accruing instantly (and then every second) after depositing in a lending pool so no need to wait for the loan being opted into by a unique borrower

āœ… Yield is constant

āœ… No race or competition to fund the best loans

āœ… Deposit and withdraw anytime

āœ… Deposit SOL in collection specific risk-isolated lending pools

āœ… Deposit liquidity for a specific collection without the need to fund a full NFT (some bluechip NFTs are very expensive)

Using Bonds

āœ… Higher APY via higher risk loans

āœ… Fund loans partially (half of a SMB for example vs 1:1 loans on other platforms). Smaller lenders can now fund loans for more expensive but less volatile bluechip NFTs

āœ… Fund loans in bulk

āœ… Loans are tradable - Lender can exit/sell the loan instantly to another lender (via AMM) before the loan expires, that way the lended liquidity isn't stuck during the duration of the loan

āœ… Option to get defaulted NFTs when funding full loans

āœ… Compounding interest for lenders depositing in Easy-mode lending pools. That way lenders earn interest on both the money deposited and the interest they earn, with no need for frequent micromanagement

Using Bonds via Automated lending Strategy

āœ… Strategies are automated bots that move offers/orders and manage them in an automated manner

How will Bonds be the most efficient solution for Solana lenders?

  1. LTV is fixed in %: no need to adjust the price to lend manually, no need to monitor price action

  2. When people repay or liquidate, it automatically auto-compounds. No need to manually refresh offers!

  3. Make offers at any amount of $SOL. So smooth!

So the Bonds are saving a lot of time for lender while being very effective

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