NFTfi Rewards

Rewards for borrowers and lenders are designed to foster a healthy, non-predatory lending environment. Earn Points incentivize borrower-friendly loan terms and responsible lending.

Earn Points for Repaid Loans

Eligible borrowers and lenders can earn points for repaid loans. The associated Earn Points are displayed as "unsecured points" in the NFTfi Rewards cockpit after taking out a new loan. Once the loan is repaid, these points become "secured points". Renegotiations are taken into account too.

Earn Bonus Points

Borrowers and lenders can secure additional Earn Points by doing loan streaks. Learn more here.

Incentivizing Borrower-Friendly Terms

Earn Points aim to incentivize borrower-friendly loan terms and a responsible lending market. Borrower-friendly loans feature competitive APRs and LTVs. In a responsible lending market, lenders manage credit risk carefully, and borrowers receive loans that they can reasonably be expected to repay, preventing excessive debt levels and over-leverage.

Calculation Principles

The calculation principles of Earn Season 1 are designed to support borrower-friendly loan terms and a responsible lending market:

  • Only repaid loans earn points: This motivates lenders to manage default risk carefully and borrowers to avoid excessive debt.

  • Larger and longer loans earn more points: This motivates lenders to provide borrowers with flexible access to various loan sizes and loan durations.

  • Lower interest rate (APR) loans earn the most points: This motivates lenders to provide borrower-friendly interest rates and risk-adequate LTVs.

Disincentivizing Wash Loans

Earn Season 1 disincentivizes wash loans, which are loans generated by users with their own or related accounts to "farm" points. Measures to disincentivize wash loans include no points for loans with APR less than 2%, loans with durations less than 3 days, loans with less than 20% loan duration utilization, and loans from related wallets.

NFTfi Leaderboard

The NFTfi Leaderboard displays unsecured and secured Earn Points. The 500 wallets with the most secured points by the end of Season 1 will receive a multiplier of up to 2.5x on their final balance.

NFTfi Rewards FAQ

To learn more about NFTfi Rewards, please visit this FAQ section.

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