xGov-37 NFT Lending – dApp

Governance xGov Proposals
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Author Benedetto Biondi, Gidon Katten (@gidonkatten), Stefano Faieta (@stefanofa), Ibu Karel, Giuseppe Palazzolo (@palace22)

Category dApps

Focus DeFi, NFT

Open-Source Yes

ALGO Requested 985000

Abstract
The ALGO Amount requested refers to the first milestone of the entire project, the plan is to propose a single milestone during each quarter so to give opportunity for more projects to request grants in each single xGov Grant batch.

In the context of this proposal, the definition of “NFTs” encompasses any on-chain tokenized asset. This includes, but is not limited to:

  • Tokenized Real-World Assets
  • Lofty property tokens
  • Vesta Equity property tokens
  • NFTs incl. art, collectibles and in-game assets
  • NFDs
  • Opulous MFTs

To truly spark activity in the ecosystem and unlock new opportunities, NFTs must be financialized. The proposal specifically focuses on including NFTs in lending and borrowing operations.

NFTs are one of the most compelling use cases of the Algorand blockchain. They are heavily traded and exchanged, and the community which supports them is strong and vibrant. Because of Algorand’s ASA technology, tokenizing assets is incredibly simple and powerful in this ecosystem. However, financial tooling for NFTs barely exists on Algorand at the moment.

This xGov proposal leads to the development of a decentralized NFT lending platform where users can collateralize their NFTs to borrow fungible tokens.
The platform features two markets: a peer-to-peer market and a peer-to-pool market, offering flexibility and liquidity to participants.

The project’s aim is to design and develop the necessary infrastructure, protocols, and algorithms for the NFT lending platform. Extensive market research, rigorous testing, and optimization efforts will be undertaken to deliver a user-friendly platform with robust security measures.

The development of this NFT lending platform will evolve the ecosystem by unlocking the value of tokenized assets and enabling access to liquidity through borrowing fungible tokens. The tools will be open-sourced, meaning any project can integrate this technology and shape it to their needs. Benefits and revenue will proliferate around Algorand’s network. NFT Lending fosters financial inclusion, empowers NFT holders to leverage their assets, and opens up new opportunities for participants within the tokenization space. The long-term applications of this technology are limited only by how much value, and how many different things, can be tokenized.

Link for details

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I hoped single grant request will not take half of all Algos on the table.

As far as I understand, you have to get 50% of all xGov votes to vote for this in order to pass it… If folks finance has control over 50% of the xGov votes the whole xGov grant scheme is just the show to look like algo is decentralized.

@Adri What happens if they get 40% of all xGov votes? At the end 40% of allocation will be missing and moved to next round?

Or does Folks guys have some insider info about the change of the allocation? 2 mil algos were decided very long time ago, perhaps in meantime the xGov allocation has been increased?

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A proposal needs to meet the threshold to pass. If they need 48% of the votes, but only get 40%, the grant is denied.

So far only 2M Algo have been allocated to xGov.

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Does it mean that the 40% allocation of 2 mil will be moved to next epoch because they were efficiently burned? Or is it going to be spread to other projects and increase their allocation?

So if there is project which requested 1% of funds, but received 0,99%, with those 40% burned votes, is that project going to be funded or not?

Btw NFT lending has updated their request and they want 1255000 now… If they receive 62,75% votes it will really look like the algorand is quite centralized…

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Why would Algorand be centralized if a project asks for lots of Algo and the community decides to fund it?

If a project doesn’t meet the voting threshold at the end of the voting session, it will not get funded. Any Algo left in the pool will be automatically carried over to the next period pool.

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i think the problem could be more that borderless capital or another VC could use the xGov funding to get their investment free ALGOs to continue developing and essentially making them money indirectly. will be interesting to watch

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If single project is so sure it will get 62% of all votes, it seems quite centralized.

If they are not so sure, and will receive 50% of votes, are you @Adri not worried that 1 million algo is going to be moved to next period and project that might be funded in this period are not funded?

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I have just noticed that “NFT Lendging” (XGov 37) project is not the same as “Galapago - NFT Lending” (XGov 42)… I take back the info about the update in the request for this NFT Lending… Still @ 985000 Algos…

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Yes, the two proposals are from different teams.

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