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NFTs
Yes, TRAVA allows users to use all of these asset types as collaterals. Before that, the special digital assets must be priced through auctions. The auction winners are involved in the lending contract. They can either possess the digital asset at a low price or earn a considerable profit from the contract.
Trava will provide the auction function for NFT assets. Thus, the NFT's owners can open an auction session to price the NFT. The auction winner can buy directly the NFT or he/she can join in a collateral smart contract by locking their NFT's payment. In this way, we can price, and put NFT into the lending process. Besides, our approach also helps increase the liquidity for NFT because the asset can be used in the lending business in an easy way. We also avoid the price fluctuation of NFT because the NFTs have been priced in the auction contract before.
TRAVA.FINANCE auction mechanism is divided into two modes: auction-to-sell and auction-for-buy-right. The difference between two modes is the ownership of the digital asset after the auction. In the auction-to-sell mode, as soon as the auction ends and the auction winner pays the fee, he/she will immediately receive the auctioned NFT.
Meanwhile, in the auction-for-buy-right mode, the winner cannot immediately buy the digital asset. After a certain amount of time specified in the auction, if the NFT owners cannot repay the loan, the auction winner can buy it at a low price. Otherwise, they get a considerable interest if the NFT owners repay the loan and get their NFT back.
Last modified 1yr ago