As Borrowers: Get Instant Loans

Use NFTs as collateral, Borrow ETH anytime

Kyoko bring instant liquidity for multiple NFT holders. NFT holders can borrow and repay ETH anytime.

Deposit your NFT as collateral for you to be able to borrow Ethereum. Deposited NFTs will be put into an NFT pool as collateral. Collateral will be stored in smart contracts.

Step 1: Deposit NFT as collateral

Step 2: Lend ETH

Step 3: Repay the loan and reclaim the collateral

What kind of NFTs that Kyoko supports?

Kyoko supports users using NFTs as collateral to borrow ETH. Kyoko supports blue-chip and emerging NFTs, which could be deposited as collateral to borrow the ETH.

Why would I borrow ETH instead of selling my NFTs?

Selling your assets means closing your position on that particular NFT collection. Hence, if you are long on the asset, you would not be entitled to the potential upside value gain. By borrowing you are able to obtain liquidity (working capital) without selling your NFTs. Users are mainly borrowing for unexpected expenses, leveraging their holdings or for new investment opportunities.

About Borrow

Before borrowing you need to deposit your ERC721 asset to be used as collateral. After this, simply head to the Borrow section and click on “Borrow” for the asset you want to borrow.

The maximum amount you can borrow depends on the NFT's value you have deposited and the available liquidity. For example, you can’t borrow the ETH if there is not enough liquidity or if your health factor doesn’t allow you to.

About Repay

You repay your loan in the same asset you borrowed, which is only ETH acceptable. For example, if you borrow 1 ETH you will pay back 1 ETH + interest accrued.

The interest rate you pay for borrowing ETH depends on the borrowing rate which is derived from the supply and demand ratio of ETH. See more in the Dual Rates.

You can find the current borrowing rate in different pools at any time in the Borrowings section of the dashboard.

How do I payback the loan?

In order to payback the loan you simply go to the Borrowings section of your dashboard and click on the repay button for the ETH you borrowed and want to repay. Select the amount to pay back and confirm the transaction.

When do I need to pay back the loan?

If you choose Health factor model, there is no fixed time period to pay back the loan. As long as your position is safe, you can borrow for an undefined period. However, as time passes, the accrued interest will grow making your health factor decrease, which might result in your deposited NFTs becoming more likely to be liquidated.

If you choose Overdue model, you need to pay back the loan in the lending period, or your deposited NFTs need to be liquidated.

See more in the section of Risk Models: Health factor or Time-based and Dual Rates.

If you still have any questions or issues, feel free to contact us.