February 10, 2022
The global NFT market grew by over 27,000% in 2021 and this growth is expected to continue through 2022 and beyond. The major problem with NFTs is they are currently not capital efficient investments. Funds invested in NFTs are locked up with no way to unlock liquidity besides selling. Many NFT collectors are reluctant to sell as that precludes the possibility of any future gains.
Chedda solves the problem of unlocking liquidity in NFTs by giving holders access to loans.
Beyond lending, we are creating a one-stop shop for NFTs where collectors and traders can:
- Discover new NFT projects and get entry to whitelists and minting opportunities
- Trade NFTs
- Lend and borrow with NFTs as collateral.
Our key innovation is NFT lending which allows users to access loans with their NFTs used as collateral.
We have built a P2P lending market for our MVP, and have our eyes on the long term goal which is to provide instant liquidity for select NFT collections by having NFT collateralized lending pools (V2).
This opens up a slew of DeFi possibilities as NFT holders can now hold on to their tokens while accessing new funds to invest in new opportunities.
For lenders, Chedda provides an opportunity for them to acquire NFTs at a discounted price in case the borrower defaults on the loan.
We have been building for 3+ months and have completed the following key features as part of our MVP:
- NFT marketplace.
- Peer to peer NFT lending market that connects lenders with borrowers.
- Chainlink price feed integration
- NFT launchpad for upcoming launches in the market.
Other features to be added to our MVP launch includes:
- Lending/borrowing support for other top NFT collections not listed in our market (OpenSea API integration)
- UX and UI improvements to enhance discoverability of NFTs.
We ask users on this forum to hop into our testnet and try it out. We are looking to collect feedback on our MVP ahead of going live. Look forward to chatting with you on our discord channel.
Long Term Vision
We see the future in NFTs going beyond the most common current use case, which is profile pictures and art.
As real world assets and metaverse items are tokenized on chain, being able access loans on these assets will be crucial in unlocking further utility. Chedda aims to be at the forefront of the NFT lending market.
We will be launching our solution in 2 phases.
V1 - P2P Lending
Chedda protocol V1 pairs lenders with borrowers.
To prevent spam and fraudulent listings, only select NFT collections that are whitelisted by an admin will be tradable and have access to the lending market. We currently support NFTs listed in the Chedda market and plan to whitelist additional popular NFT collections on Polygon. Holders of tokens in these collections will see their NFTs on the “Borrow” page, and be able to request loans on them. In the future we plan to open up this process so the community can vote on which collections can be listed on the Chedda markets.
V2 - Lending Pools
The long term goal of Chedda is to allow NFT collectors access instant liquidity. This will be achieved through lending pools where token holders can deposit either fungible or non fungible assets as collateral.
The collateral value of an NFT will be determined by the time weighted floor and average price of the collection it belongs to. For NFTs listed in the Chedda market, this data will be available in our smart contracts. Select NFTs on other markets will be tracked through a data oracle. The lending pool smart contracts will then compute the collateral value of these based on rules defined in the protocol.
Besides interest on loans, liquidity providers will be further incentivized by earning additional rewards in CHEDDA tokens locking their tokens for longer periods.
We plan on keeping the V1 lending markets running along side V2 lending pools in the long term to give NFT collectors more options.
The CHEDDA token is the utility token on the platform.
The token offers the following benefits to holders:
1. Stake tokens to earn rewards in new token emission.
2. Stakers have a chance to win NFTs and whitelists for popular collections launching in market.
3. A portion of protocol fees will be shared with stakers.
4. Governance: Voting on protocol direction and NFT projects listed in markets.
- Launch on Polygon testnet- (Imminent) - $5000
- Smart contract audits - Mid March, 2022 - $3000
- Launch on Polygon Mainnet - Mid April 2022 - $2000