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Lending: Guide for Lenders

Put your SUI or TKT to work by funding collateralized loans and earning a yield.

1. Finding Loan Requests​

Navigate to the "/lending" page to browse all open LoanRequests. Each card displays the NFT being offered as collateral and the terms proposed by the borrower.

2. Evaluating a Request​

As a lender, you are responsible for assessing the value of the collateral relative to the loan amount. Consider:

  • The Asset: Is the collateral a desirable and valuable ExperienceNFT?
  • The Terms: Does the interest (Repayment Amount - Principal Amount) represent a good return for the risk and duration?

3. Funding a Loan​

If you find a request you'd like to fund:

  1. Click the "Fund Loan" button.
  2. A confirmation modal will summarize the terms.
  3. When you approve the transaction, the principal amount is sent from your wallet to the borrower. Your wallet address is now recorded in a new ActiveLoan object as the lender.

4. Managing Your Active Loans​

You can view all the loans you have funded in your Dashboard under the "My Loans" tab in the "Loans I've Lended" section.

5. Outcomes​

  • Successful Repayment: When the borrower repays the loan, you will automatically receive the full repayment amount in your wallet. The platform fee is deducted from your profit, not the principal.
  • Default & Liquidation: If the borrower does not repay the loan by the due date, the loan is considered in default. A "Liquidate" button will appear on the loan card in your dashboard. Clicking this will trigger a transaction that transfers the collateralized NFT or Fraction directly to your wallet, settling the debt.