🪶Basics of Lending Protocol

Aligning understandings is also an important part before reaching consensus

Definitions

Floor Price: real-time market price of collection asset with lowest price.

Buy Now Pay Later / Buy NFT Pay Later (BNPL): a service powered by xBank Open Money Market to connect money demands and supplies in forms of peer-to-peer lending and installment loan.

Buyer: who is purchasing an NFT with/without a payment plan. In the case of purchasing with a payment plan, the buyer is also a borrower who utilizes the money market and borrow money from liquidity providers. At current version of xBank, buyer is also refered to as a borrower.

Liquidity Provider (LP): LP is also refered to as a Lender. LPs are who provide money supplies with different conditions in forms of lending offers and earn on lending out money to support payment plans from various buyers.

Payment Plan: a money demand initialized by a buyer with an installment plan for purchasing NFT and putting it as a collateral at the same time for the borrowed money.

Seller: who sells NFT assets on different marketplaces. Sellers are not directly involved in the payment plan. xBank Market aggregates NFTs on listing and help buyers to complete their purchases with payment plans.

Lending Offer: a money supply provided by LPs/lenders to support a payment plan.

Collateral: before the loan / payment plan is paid out, the buyer's asset staked in the vaults for protecting lenders from default.

Liquidation: a process to protect lenders after the money is lent to borrower and when the borrower fails to repay.

Allowance: a control mechanism that gives you the power to manage how much you're willing to lend, but it requires your attention to update and maintain.