What is Frakt?
Frakt is an NFT lending/borrowing protocol on Solana that provides various lending products. These include perpetual loans, flip loans, and bonds. It is the first decentralized NFT liquidity protocol on Solana, offering both peer-to-pool and peer-to-peer loans.
Background
Frakt was the first generative art collection on Solana, and the third NFT collection was launched on the Solana blockchain in June 2021. Pawnshop Gnomies was the first project to issue an on-chain loan backed by a Solana NFT in November 2021. This accomplishment drew the attention of FRAKT, which led to a merger in March 2022. FRAKT unveiled its new offerings in May 2023.
How It Works
Depositors/lenders provide SOL liquidity to lending pools and order books, earning interest. Borrowers, on the other hand, can borrow SOL instantly using their NFTs as collaterals. The FRAKT protocol is designed to unlock liquidity from both floor & expensive NFTs for use in DeFi. This allows individuals and DAOs to unlock liquidity instantly, generate sustainable yields, and empower their communities.
Key Takeaways
- Frakt is an NFT lending/borrowing protocol on the Solana blockchain that offers various lending products.
- It is the first decentralized NFT liquidity protocol on Solana, offering both peer-to-pool and peer-to-peer loans.
- Frakt was Solana’s first generative art collection, launched in June 2021.
- After drawing attention due to a successful on-chain loan backed by a Solana NFT, Frakt merged with Pawnshop Gnomies in March 2022.
- The Frakt protocol allows for unlocking liquidity from both floor and expensive NFTs for use in DeFi, benefiting individuals and DAOs.
