Papr: NFT Loans Simplified 📜


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Dear country without banks

Today we will delve into the world paper.

Papr is a revolutionary NFT lending protocol with a cool DeFi twist in that it’s built on Uniswap.

This project, developed by the Backed team, peer to peer again peer-to-pool As well as other NFT loan systems.it is more like peer-to-token approach.

The Backed team has also just released a fun adventure experience that makes it super easy to loan on Papr, so let’s take a closer look at what this NFTfi project and its new UI are all about.

-WMP

👉 You can now stake ETH via MetaMask

Papr, an up-and-coming NFT lending protocol developed by supportedallowing borrowers to mint loans denominated in Papr (“perpetual APR”) tokens by using NFTs as collateral.

Borrowers can then trade these tokens on decentralized exchanges like Uniswap for purposes such as ETH liquidity, creating an ongoing feedback loop between Papr’s trading price and the protocol’s interest rate.

As for lenders and liquidity providers, Papr tokens offer holders a unique, low-maintenance way to obtain loans in a variety of sectors. many An NFT collection with $paprMEME, the first Papr token, provides loan exposure across 20+ popular collections and growing.

Thus, the protocol provides instant loans to NFT holders and instant exposure to lenders, and changes in the price of $paprMEME over time will affect the cost of financing to borrowers and $paprMEME holders. represents a reward for

Unlike peer-to-peer or peer-to-pool lending systems, Papr is a proprietary NFT lending protocol where the contract of the project determines the interest paid by the borrower based on the market price. In this way, Papr resembles a “peer to $papr token” approach.

Unpaid interest is therefore compensated through an increase in the $paprMEME price, establishing a continuous interaction between the Papr trading price and the protocol’s interest rate. As the value of $paprMEME on Uniswap fluctuates, the interest rate will adjust accordingly, allowing borrowers to respond by making or closing loans as needed.

Interest is paid through the increasing value of $paprMEME itself, so new borrowers receive fewer tokens for the same collateral over time. Once the loan is completed, the borrower will repay the exact amount of $paprMEME originally withdrawn, but due to interest charges, the market value of $paprMEME may have increased since the loan was initiated.

Note that Papr loans have a maximum loan-to-value (LTV) ratio of 50%. This means that the total liability cannot exceed half of the floor price of the collateral NFT. For example, as shown below, if the current lowest price of Fini NFT is 0.15866 ETH, then the maximum amount that can be borrowed at that time is 0.08027 $paprMEME each, since 1 $paperMEME token is currently trading at 1.012 ETH. Become.

Collateral value is calculated by Oracle based on a seven-day time-weighted average of the highest recovery bids. If the loan exceeds the liquidation threshold, the NFT collateral may enter the Dutch auction, starting at 3x the floor price of the NFT and decreasing by 70% daily. The proceeds are then credited to the borrower.

$paprMEME currently supports borrowing or lending exposure to the +20 NFT collection. This is:

  1. 🎨 Art Gobblers

  2. 🌱Azuki beans

  3. 🐵 chimpanzee

  4. 🆒 cool cat

  5. 🍑 Cryptodick Butts

  6. ⚡ Digods

  7. 💓 Finilia

  8. 🧙‍♂️ Order of the Forgotten Rune Mages

  9. 🐸 Frog Friend

  10. 🐧 lil puzys

  11. 🎲 Loot

  12. 🚬Maker

  13. 👸Milady Maker

  14. 🐦 moonbird

  15. 🌙 Moonbird Weirdness

  16. 🐈‍⬛ Mooncats

  17. 🎮Pixelmon

  18. 👥Regular customer

  19. 🦭 sappy seal

  20. 🐱 tabby cat

  21. 😈 washes

  22. 👩 Women’s world

  23. 🪰 Cryp Toadz

On May 15th, Backed launched a new and user-friendly borrowing experience for Papr. adventure paper wtf. A new interface option simplifies the Papr loan process with an engaging, adventure-themed guide by his friendly hypothetical Toad NFT.

Once you connect your wallet to the platform, Toad will guide you through the process in 5 steps. Next, select her supported NFT you want to borrow and decide how much you want to borrow. Toad warns you about how dangerously your position is set:

Once you have selected your collateral and loan amount, you can press the Borrow button to confirm the transaction with your wallet, lock your NFT and receive $paprMEME. $paprMEME can be traded with ETH etc. if desired. However, if the loan is not repaid, it will eventually be liquidated and the NFT will be put up for auction.

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Papr is a new, but interesting, entrant to the bustling NFT lending sector. As a small start-up project, it has already carved out its own space here thanks to its innovative “peer-to-dollar paper token” approach that offers a dynamic and market-responsive protocol for NFT loans.

Additionally, the platform’s systems and interfaces, guided by Papr’s new Toad helper, make the borrowing process particularly simple and accessible to a wider audience.

That being said, I think this is a protocol to watch. If you’re also interested in tracking Papr’s progress in the future, we recommend keeping an eye on the following resources: DeFiLlama dashboard support or $paprMEME Dune Dashboard Backed by co-founder Wilson Cusack!

William M. Peester is the creator of metaversal— Bankless newsletter focused on the emergence of NFTs in the crypto economy. He is a senior his writer for Bankless’s main newsletter and a contributor to the NFT curation platform JPG.

Unbanked citizens ⚑ went from $264 to $6,077 last year. In a bear market he has a 22x ROI 🚀!

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Conor the Tech Veteran
He previously spent 6 years publishing research on tech stocks, and believes in using a combination of fundamental, technical, and quantitative analysis. Prior to a career in tech stocks journalism he was a technology and semiconductor analyst with a research team.

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