Borrow Facility
Terms & Conditions.
TERMS & CONDITIONS FOR THE DAO DUCK NFT BORROWING PROTOCOL
Introduction
The following Terms & Conditions (“T&Cs”) govern the use of the Dao Duck NFT Borrowing Protocol (“the Facility”) which allows holders of Dao Duck and/or Dao Duck Genesis Collections Non-Fungible Tokens (“NFTs”) to borrow Ethereum (“ETH”) using their NFT as collateral. By using the Facility, you (“the Borrower”) agree to these T&Cs and acknowledge that you have read, understood, and agreed to be bound by these T&Cs.
Facility Description
The Facility enables Borrowers to leverage the value of their Dao Duck and/or Dao Duck Genesis Collections NFTs to borrow ETH. The Facility is implemented using off-chain management by a Gnosis multi-sig wallet, and approval is done manually.
Eligibility Criteria
To be eligible to use the Facility, you must be the holder of a Dao Duck and/or Dao Duck Genesis Collections NFT. Mutant, Baby Ducklings, and Pondverse NFTs are not eligible for borrowing. The Borrower must maintain a minimum collateralization rate of 150% and can only borrow up to 66.67% of the value of their NFT collateral.
Loan Terms
The Borrower can choose a loan duration of up to 12 months. The yearly interest rate is 15%, compounded monthly. This means that the Borrower will be charged 1.25% interest per month. The Borrower can choose to make monthly interest payments, with the full loan amount due at the end of the loan term. Alternatively, the Borrower can choose to make interest and principal payments on a monthly basis.
Application Process
To start the borrowing process, the Borrower must fill in an application form that includes their NFT details and the desired loan amount. The application form will also require the Borrower to agree to the loan T&Cs, including the collateralization ratio of 150%, the annual interest rate of 15%, and the maximum loan period of one year. Additionally, the Borrower must pay a 0.003 ETH processing fee, which covers transaction fees and the team's time. Once the application is submitted, the Borrower must wait for approval from the lending team.
Loan Disbursement
Once the application is approved, the Borrower will receive the loan amount in Ethereum. The NFT asset will be held as collateral to ensure the loan amount is always covered by the value of the NFT. The Borrower will have access to the funds as soon as they arrive and can use them as they see fit.
Interest Payments
During the loan period, the Borrower must keep track of the interest rate using our tool and ensure that they make timely interest payments. The annual interest rate of 15% will be charged on the loan amount, and the Borrower will be required to pay this interest on a regular basis until the loan is fully repaid. The lending team will provide clear instructions on how to make these interest payments and keep the Borrower informed of any changes to the interest rate or loan terms.
Loan Repayment
The Borrower must repay the loan amount in full at the end of the loan period. The maximum loan period is one year, and the Borrower must ensure that the loan is fully repaid within this time frame. Failure to repay the loan on time may result in the NFT asset being forfeited as collateral. The lending team will provide clear instructions on how to repay the loan, and the Borrower must follow these instructions carefully to avoid any delays or penalties.
Dao Duck believes in the power of Web3 to bring about a more decentralized, equitable future, and this new feature is just one way we're pushing the boundaries of what's possible in this exciting space.
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Join us on the cutting edge of innovation and see how Dao Duck can help you unlock your full potential!
Empowering NFT holders to unlock the full potential of their assets in a secure and transparent manner. You can now leverage the power of Web3 to earn revenue and interest on your Dao Duck NFTs without ever having to sell them. It's a revolutionary way to put your assets to work for you, while still maintaining ownership and control over them.
We've taken extraordinary measures to ensure the security and transparency of the borrowing process. With our state-of-the-art multi-sig Gnosis wallets and rigorous testing and auditing of the Google Sheets document, you can trust that your assets are in safe hands.
It's important to note that borrowers can borrow up to 66.67% of their NFT's current value in ETH, with a minimum collateralization ratio set at 150%.
This means that the maximum amount a holder can borrow against their NFT is 0.087533 ETH.
With an interest rate of 15% per annum, borrowers will be required to pay 0.01313 ETH in interest after a year.
The introduction of this borrowing feature provides an opportunity for holders of Dao Duck NFTs to unlock the value of their NFTs without selling them and for Dao Duck to generate revenue and earn interest on the loans. The use of multi-sig Gnosis wallets and thorough testing and auditing of the Google Sheets document ensures the security and transparency of the borrowing process.
Collateral Requirement.
The NFT must be from the Dao Duck and/or Dao Duck Genesis Collections. This borrow facility does not cover Mutant & Baby Ducklings.
Overcollateralization.
The borrower must maintain a minimum collateralization rate of 150%. This means that the borrower can only borrow up to 66.67% of the value of their NFT collateral. This is equal to 0.08753 ETH
The borrower can choose a loan duration of up to 12 months.
Loan Duration.
The yearly interest rate is 15%, compounded monthly. This means that the borrower will be charged 1.25% interest per month.
Interest Rate.
Repayment.
The borrower can choose to make monthly interest payments, with the full loan amount due at the end of the loan term. Alternatively, the borrower can choose to make interest and principal payments on a monthly basis.
Collateral Requirement.
The NFT must be from the Dao Duck and/or Dao Duck Genesis Collections. This borrow facility does not cover Mutant & Baby Ducklings.
Overcollateralization.
The borrower must maintain a minimum collateralization rate of 150%. This means that the borrower can only borrow up to 66.67% of the value of their NFT collateral. This is equal to 0.08753 ETH
The borrower can choose a loan duration of up to 12 months.
Loan Duration.
The yearly interest rate is 15%, compounded monthly. This means that the borrower will be charged 1.25% interest per month.
Interest Rate.
Repayment.
The borrower can choose to make monthly interest payments, with the full loan amount due at the end of the loan term. Alternatively, the borrower can choose to make interest and principal payments on a monthly basis.
Future.
Process to be governed by smartcontracts.
Lower collateralization rate based on borrowers lending history.
Release governance token
Enable liquidity provision