What is Unlockd?
Instant, safe loans against your NFTs while keeping their utility.
Unlockd is a decentralized non-custodial liquidity protocol where users can participate as depositors or borrowers: it facilitates the safest, most secure, and cost-effective way to borrow against NFTs with instant, permissionless loans, as well as risk-free, auto-compounding yield directly in ETH for lenders.
Instead of using fungible tokens as collateral for loans, which is suboptimal since you lock liquid tokens to get other liquid tokens, Unlockd lets you turn illiquid assets into productive, liquid capital.
It is, at its core, a set of smart contracts deployed to the Ethereum Mainnet, where depositors lenders deposit their assets in pools to receive yield in exchange for their liquidity contribution. This is a Peer-To-Pool model, more efficient and fair than other Peer-To-Peer models. Borrowers take permissionless loans with no fixed expiration date, instantaneously, with a fair interest rate, and against their ERC721 NFTs — if they are part of the eligible collections. These loans will operate cross-chain in the future, so the collateral and the borrowed tokens may reside in different chains.
Who uses Unlockd?
Unlockd is the protocol that unlocks the full liquidity and utility of the digital assets economy.
Our lending and borrowing market allows DeFi, Art, Real-World and Gaming users to enjoy extra liquidity while holding their NFTs with an NFT-backed, secure and instant loan.
Art collectors: Navigate art acquisition with financial flexibility: avoid tax events associated with selling by borrowing against your art with asset-wise appraisal and lowest interest rates while keeping ownership and display rights.
DeFi users: Make the most out of your idle crypto through boosted APYs on deposits at our robust, audited, and secure protocol, or, in the future, leverage your positions from other DeFi protocols to access additional funds to compound, hedge or diversify.
Investors: Enjoy the highest degree of capital efficiency and safety for your investments, bundling NFTs appraised individually from different collections as common collateral with maximum borrowing power and minimum liquidation risk thanks to our industry-unique data framework.
Guilds: Turn your yield-generating and idle resources into productive assets to optimize working capital, soon borrowing against baskets of in-game items while using them in-game to keep operating at full capacity, scale operations and onboard new players.
Read their testimonials at our website:
Everything you need to know, in a nutshell.
In Unlockd, lenders deposit their assets in pools to receive yield in exchange for their liquidity contribution. This is a Peer-To-Pool model, more efficient and fair than other Peer-To-Peer models.
Borrowers take permissionless loans, with no fixed expiration date, instantaneously, with a fair interest rate, and against their NFTs — if they are part of the eligible collections. These loans will operate cross-chain in the future, so the collateral and the borrowed tokens may reside in different chains.
The accrued interest is used to pay lenders’ yields. Currently, there are no fees applied to transactions. In the future, such fees will be included, and used to distribute rewards to token holders and grow the DAO treasury.
We are working in a 'True Ownership' feature, still in development: Borrowers maintain 100% of the utility of their NFT by still owning their collateral, which means that they will remain eligible for potential drops and will continue to have access to all the advantages they enjoy when they are not using their NFTs as collateral. Of course, they won't be able to sell or transfer the NFTs while being used as collateral.
The NFT price assessment is performed externally by world-class appraisal partners that use Machine Learning to price individually each collateral, without using floor prices. We use multiple sources of data blended into our own models.
The Unlockd protocol of smart contracts is robust and secure (audited by Halborn, world-leading firm) and doesn't rely on features that have being proven failure points in other NFT-backed lending protocols (i.e., asset bridges). Our source code is open-source and peer-reviewable.
To ensure the utmost security also in terms of market and counterparty risk, the Unlockd's Data Science team has developed a custom Risk Framework that develops in-depth mathematical models to cover Asset and Liquidity risks and provides a Dynamic Loan-To-Value for each independent NFT depending on multiple ingested variables.
A robust Liquidation Process has being designed to minimize liquidation friction and have multiple independent liquidation options to always choose the optimal route that brings the best outcome to the users of the protocol.
Unlockd's seamless integration with hashmail enables customizable notifications to keep you informed about your investments. By following a few easy steps, you can opt to receive these notifications across your preferred web2 channels - an excellent way to stay updated on health alerts, NFT auction notifications, and future value-added services.
Unlockd Marketplace allows for the listing or auction of NFTs, even with attached debt. This feature offers a dual advantage - buyers can acquire desirable NFTs at a potentially reduced price, while sellers can transfer their loan obligation along with the NFT.
Unlockd is in its path to decentralize progressively to the Unlockd DAO, with fair tokenomics and a governance model that follows that of the best decentralized protocols out there. Our Policy Team ensures that Protocol, Market and Incentives Policies are always aligned with our users' best interests.
Unlockd is backed by world-class investors ($4.4M seed round) and trusted by dozens of gaming guilds with hundreds of millions of dollars in AUM. Our tech ecosystem is formed by multiple infrastructure partners that integrate our lending solution into marketplaces, rental protocols and other innovative NFT finance products.
Unlockd has sold out its genesis NFT collection, 3500 NFTs that bring to life the universe of Unlockd and serves as a vehicle for forging lasting bonds with community members while allowing them to be early testers and receive unique rewards.
You can join our 100,000+ member community and follow us in 7 different social media channels.
Last updated
