Before staking NFT in Starfish protocol for loans, the following considerations should be taken into account:
- Acknowledge the collateral ratio of the NFT collection
- Loans will be distributed in various assets, namely, USDC, USDT, DAI, ETH, ASTR and more.
- Acknowledge the interest rate & payment currency (based on loan currency)
- Liquidation mechanism
Once users are familiar with the parameters and conditions of creating a NFT loan, they can proceed with the following steps to borrow assets by staking their NFTs:
- 1.Deposit NFT as Collateral. (Borrowers can only deposit whitelisted NFT for loans)
- 2.Verify and lock deposited NFT in NFT collection escrow contract, which is secured and locked.
- 3.Choose the type of token to borrow and acknowledge
- 4.Pass through NFT oracle to get the latest floor price and determine the amount of tokens to be borrowed.
- 5.Receive NFT loan in stablecoins or ETH or ASTR.
- 6.Pays back debt (loan + borrow interest) to get back NFT staked.