Stater Unlocks NFT (Non-fungible Token) Liquidity in New Ways

Project Reviews / 12.04.2021

Stater is a Peer-to-Peer NFT lending protocol and marketplace that seeks to merge DeFi with unique NFT artwork. The platform enables lenders and borrowers to participate using their own NFTs or Stater collectibles. Uniquely, users can borrow funds using their NFTs as collateral. In this way, they gain access to liquidity without relinquishing ownership of their digital assets.

What Problems Does Stater Attempt to Fix?

Stater’s developers took some of the most pressing issues facing NFT owners and reduced or eliminated them via its novel approach. Primarily, the platform creates a completely new funding mechanism and liquidity source in the market.

Lack of Liquidity

NFT lending isn’t new, but the previous attempts to introduce these features haven’t seen great success for multiple reasons. Their slow adoption mainly stems from the fact that the NFT lending process is different from other assets because NFTs are usually valued based on personal demand rather than on a market-wide level.

Slow Lending Process

Stater eliminates much of the red tape associated with the lending process. The network’s streamlined strategy eliminates friction and provides borrowers with a faster lending process. In this way, Stater democratizes lending in new ways.

Benefits of Stater

Stater’s technical structure provides all participants with a variety of benefits that are exclusive to the network. For one, the network functions in a non-custodial manner. 

Open Source

Another advantage gained by Stater users stems from the open-source coding of the network. The entire Stater protocol is available on Github. Additionally, the developers have taken their efforts a step further and in the process of receiving third-party code edits by Halborn.

Borrower Benefits

Borrowers gain a lot when they choose to participate in Stater. For example, they have the option to pick and chose their requirements. They can create custom loan packages by selecting single or multiple assets. They can also select loans based on their specific criteria. You can base your decision on asset value, borrow amount, loan duration, and the number of installments.

Analytics

Borrowers and lenders enjoy access to a variety of risk mitigation tools as well. Users can fulfill their due diligence requirements using these tools. In this way, Stater’s design provides confidence to all parties.

Priced in ETH

All activities on Stater are priced in ETH by default. This decision makes sense when you consider that Ethereum is the largest NFT network in the world. On Stater, the entire lending process for lenders and borrowers is done in ETH. However, you can also select to get paid in the firm’s native governance and utility token, STR Token. 

How Does Stater Work

Stater is an Ethereum-based platform that acts as a non-custodial escrow between lenders and borrowers. The platform also introduces a marketplace where lenders select assets and agree on terms with borrowers. Keenly, the agreed assets remain locked in escrow until the loan’s terms are fulfilled.

Fair Value Oracle

Stater introduces a Fair Value Oracle to determines the value of submitted NFTs. This off-chain sensor compares the submitted NFTs to similar assets with similar properties. Categories such as properties and market history are reviewed. The oracle will consider the NFT’s market cap, volume, market trend, and total number of assets available. This system also looks at asset-specific information like properties past transaction history, number of past transactions, and the NFTs mint date.

Pool Lending

Those seeking quick access to funding can receive an instant loan from the lending pool protocol. They need to submit their NFT and the Stater fair value oracle determines the NFT value in minutes. Additionally, users can earn rewards by simply providing liquidity to this pool. All rewards are paid out daily.

STR Token

The STR token acts as the main utility and governance token for the ecosystem. Users have the option to receive loans or fast loans in this token. Also, In the event a borrower defaults, users choose to receive the collateral NFT or its value in STR. There’s even a partial payment option that allows you to receive partial payment in STR and the balance after the NFT is sold on the marketplace.

Stater NFTs

Stater introduces some custom native NFTs via its collector’s edition. This limited series provides scarcity and access to extra discounts. You can also lend or borrow these assets. Best of all, Stater NFT holders gain discounts and promotions such as Airdrops.

Staking

You can stake your Stater NFTs and unlock additional discounts. Specifically, stakers receive a 50% discount from the interest rate fee as a borrower and 50% from the loan amount fee as a lender. Notably, you can only stake one Stater NFT to be eligible for these rewards.

Liquidity Mining

Stater supports liquidity mining pools. You receive daily rewards via Uniswap when you participate. Liquidity mining protocols are more popular than ever because they enable anyone to earn easy profits with minimal effort. 

Governance

Another feature that can’t be overlooked is Stater’s community governance mechanism. STR token holders can determine the future of the network via proposals. You can vote on updates, new tokens, and even on how the fee structure should operate.

Stater – Get a Loan with an NFT

Stater combines some cool features with a secure lending protocol to create a one-of-a-kind NFT marketplace experience. The system is set up to protect lenders and unlock millions in locked NFT capital. For these reasons, Stater is sure to spark NFT lenders’ interest and those seeking access to liquidity in a frictionless manner moving forward.

Disclosure: This is a sponsored post. Readers are encouraged to conduct further research before taking any action. Crypto Adventure does not endorse any crypto projects cryptocurrencies listed, mentioned, or linked to on our site.

David Hamilton aka DavidtheWriter is a long time Bitcoinist and cryptocurrency journalist. Currently, he has over a thousand articles published on blockchain technology. His expertise and experience makes him one of the most reputable writers in the sector.