Why choose FRAKT

What are the advantages of the FRAKT protocol?

For Borrowers

✅ Instant liquidity so no need to wait for the loan being opted into by a unique lender
✅ 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.
✅ Different durations : flexibility for users to use Flip loans or Bonds (up to 7-14 days expiration) or Perpetual loans (no expiration)
✅ 12H Grace period for borrowers so they have a last chance to repay their debt
✅ Discord notifications that sends reminders and alerts about their loans
✅ Free or discounted Flip loans for Frakts and Gnomies holders (see holder benefits) ✅ Bulk loans to further improve UX
✅ High LTV and low fees for Bonds (higher LTV loans) ​
✅ Staking integration : unlock liquidity from your @DeGodsNFT AND keep accumulating $DUST as explained here​
🔜 Buy Now Pay Later feature enabling Mortgages​
🔜 Expand staked loans to other collections

For Lenders

Using lending pools

✅ 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
✅ Yield is constant
✅ No race or competition to fund the best loans
✅ Deposit and withdraw anytime
✅ Deposit SOL in collection specific risk-isolated lending pools
✅ Deposit liquidity for a specific collection without the need to fund a full NFT (some bluechip NFTs are very expensive)

Using Bonds

✅ Higher APY via higher risk loans
✅ 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
✅ Fund loans in bulk
✅ 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
✅ Option to get defaulted NFTs when funding full loans
✅ 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

✅ 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. 1.
    LTV is fixed in %: no need to adjust the price to lend manually, no need to monitor price action
  2. 2.
    When people repay or liquidate, it automatically auto-compounds. No need to manually refresh offers!
  3. 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