# Overview

What is Pine

## Our Mission

Our mission at Pine is to build and facilitate the adoption of technology that will bring asset-backed financing on-chain.

As true believers in blockchain technology, we see a future where payment will be done in digital currencies and asset ownership will be represented by non fungible digital tokens (“NFT”). Our solution, the Pine Protocol, will be the smart contract infrastructure that will allow asset-back financing to be conducted more efficiently and transparently on the blockchains.

Our technology solutions will initially be built to cater to the early adopters of digital assets financial services, i.e. NFTfi, and be eventually extended to a wider set of traditional assets with adoption from traditional financial institutions.

The Pine team is composed of contributors with extensive experience and expertise in blockchain technology, digital assets exchange, quantitative trading, software development, e-commerce and traditional banking.

## Our Ecosystem

* ***PineDAO*** - Pine’s community-owned DAO, PineDAO, plays an active role as a liquidity provider and incubator within the NFT space, with the focus on driving the adoption of NFT technology and the development of NFTFi solutions
* ***Pine Token*** - The Pine token is the ecosystem token for the Pine protocol and the PineDAO. It will be initially launched on ETH Mainnet and Polygon and it serves primarily as a transactional, utility and governance token

## Our Solutions

* ***Pine Protocol*** - non-custodial decentralized asset-backed lending protocol that allows borrowers to borrow fungible digital tokens from lenders using non-fungible tokens as collateral
* ***Pine Platform*** - two-sided loan marketplace decentralized application that is essentially an interface for lenders and borrowers to interact with the Pine Protocol

## Why Pine

| Non-custodial                     | Permission-less                                          |
| --------------------------------- | -------------------------------------------------------- |
| Complete control over your assets | Complete control over your lending and borrowing actions |

| For Lenders                                                                                        | For Borrowers                                                               |
| -------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------- |
| Earn yield on fungible digital assets                                                              | Instant permission-less loan with no back-and-forth needed with lenders     |
| Acquire NFT assets at a discount                                                                   | Multiple lenders to choose from to ensure competitive terms                 |
| <p>Segregated pool structure for better: <br>- market risk management<br>- low compliance risk</p> | Fixed term loans giving borrower peace of mind to not get liquidated easily |
|                                                                                                    | Flexibility to repay loan early or to extend loan via rollover              |
|                                                                                                    | Mortgage-like features giving flexibility for buying and selling NFTs       |


# Protocol Highlights

Elements that make our protocol stand out

## i. Asset-Backed Loan

The main product of the protocol is to serve as a facilitating platform for Asset Back Loan borrowing and underwriting. Users will be able to pledge NFTs as collateral to meet their liquidity requirements while on the other hand to extract extra yield from their idle cryptocurrency cash.

## ii. Segregated Pool

Every lender sets up their own segregated lending pool on the Pine protocol instead of participating in commingled lending pools alongside with multiple depositors. This gives each lender flexibility to choose the types of collateral they would like to lend against and set their own terms. When a loan position defaults, the ownership of the collateral is transferred to the lender. There is no need for forced selling of the collateral as every loan and the underlying collateral is mapped to only one lender. Finally, lenders face less compliance and regulatory risk with the segregated pool structure as compared to a public lending pool where funds from multiple depositors are commingled.

|                             | Segregated Pool | Commingled Pool |
| --------------------------- | --------------- | --------------- |
| **Risk Assessment**         | Accurate        | Blurry          |
| **Control of Exposure**     | Lender          | Protocol        |
| **Ownership of Collateral** | Defined         | Vague           |
| **Risk of Bank Run**        | Not at risk     | At Risk         |

## iii. Term Loan

All loans are structured as term loans on the Pine Protocol. This means that all loans on Pine have a fixed duration, e.g. 7 days. Lenders can offer multiple loan durations when setting up a lending pool for a specific NFT collection. Furthermore, lenders can also set different terms, i.e. LTV and interest rates, for different loan durations in order to manage the associated risk. The term loan structure makes it a lot easier for borrowers to manage their loan positions as everything, such as repayment date, total interest payable, etc are known and agreed upon on the onset when the loan is initiated. Under normal circumstances, borrowers face no liquidation risk as long as they repay or extend the loans before the end of the loan term.

|                                           | Term Loans                 | Continuous Loans   |
| ----------------------------------------- | -------------------------- | ------------------ |
| **Terms of Loan (e.g. interest payable)** | Fixed at the start of term | Changes constantly |
| **Interest Rate**                         | Fixed                      | Volatile           |
| **Cash Flows**                            | Predictable                | Unpredictable      |
| **Market-to-market Liquidation**          | No                         | Yes                |
| **Risk of Protocol Insolvency**           | Low                        | High               |


# Feature Highlights

## i. Loan Marketplace

The Pine platform (pine.loans) serves as a marketplace decentralized application (“dApp”) for asset-backed loans. It is a platform for multiple lenders to list their loan offerings and allows NFT holders to initiate and extend loans with the best terms available on the market. In the back, the platform operates similar to an exchange that provides an offer book structure and guarantees enforceability of the terms.

## ii. Lender Portal

The Pine platform offers a lenders portal for lenders to manage their segregated pools and loan offers. Lenders can use this portal for pool creation, loan management and collateral repossession. Other features, such as loan marketplace analytics, will be available to help lenders optimize their yield generation and risk management.

## iii. Seamless Financing

The Pine platform offers different financing options for the purchasing of NFTs on open marketplaces. Buyers can bid on or outright buy an NFT with a mortgage or to finance the purchase of an NFT using their existing portfolio of NFTs as collateral.

## iv. Pine Listing

Collateral Listing is a critical piece to enabling margin trading of NFTs. Users would be able to list their NFTs for sale even if they are currently serving as a collateral of an outstanding loan. A key constraint is that the sales price must be greater than the total outstanding loan amount. When the sale is done, part of the proceeds would first be used to repay any existing loan associated with the NFT automatically and the seller can pocket the rest.

## v. Credit Market

The loans by default are not negotiable instruments. Pine endeavors to build the most efficient market by tokenizing the loans and creates secondary markets for both sides of the credit market. Tokenized lender position (promissory note) and tokenized borrower position (collateral receipt) will be transferable and freely tradable in the secondary credit markets.

## vi. AML Compliance

The protocol works with third-party on-chain compliance platforms to enable address screening. Lenders or borrowers can opt in to be compliant if their address is verified to be below certain risk levels. They can then further choose to only interact with counterparties that are also compliant on the protocol.


# Roadmap

## Product Phases

### V1 - Alpha (*Jan 2022 - Mar 2022*)

First functional version of Pine

* End-to-end functional NFT-backed loan protocol
* Web interface for borrowers

### V2 - Beta (*Mar 2022 - Current*)

Enhanced features and lender's portal

* Upgraded composability for core lending pool smart contracts which allows for features such as
  * Loan Rollover - allow borrowers to extend loans at the end of a term
  * Pine Now Pay Later - allow borrowers to buy NFTs with a Pine loan on open marketplaces
* Web interface for lenders to open and manage their lending pools
* Simple flat fee structure for Pine protocol fee

### V3 - Public (*Q4 2022*)

Robust NFT-backed loan protocol and a two-sided NFT-backed loan marketplace

* NFT-backed loan protocol that is efficient, scalable and fair for both lenders and borrowers during the entire loan cycle&#x20;
* Lending and borrowing positions wrapped into NFTs that are tradable on secondary markets
* Support for custom NFT valuation oracles&#x20;
* More users features&#x20;
  * Pine Listing - listing and selling of Pine loan collaterals on NFT marketplaces&#x20;
  * Automatic loan repayment and rollover Full-fledge two-sided NFT-backed loan marketplace&#x20;
* Dynamic fee structure for Pine protocol fee

## Timeline

<table><thead><tr><th width="160">Time</th><th width="246">Item</th><th>Description</th></tr></thead><tbody><tr><td>Jan 2022</td><td>Nassec Audit (v1)</td><td>v1 smart contract audit</td></tr><tr><td>Feb 2022</td><td>NFT-backed borrowing</td><td>Allows NFT holders to make permissionless loans in ETH</td></tr><tr><td>Mar 2022</td><td>Pine Now Pay Later</td><td>Allows buyers to PNPL on NFT marketplaces</td></tr><tr><td>May 2022</td><td>Quantstamp Audit (V2)</td><td>V2 smart contract audit</td></tr><tr><td>Jun 2022</td><td>Loan rollover</td><td>Allows loans to be extended on-chain</td></tr><tr><td>Aug 2022</td><td>Lender’s Portal</td><td>Allows anyone to set up lending pools</td></tr><tr><td>Sept 2022</td><td>Loan orderbook</td><td>Allows borrowers to browse and select from multiple pools when initiating and rolling over loans</td></tr><tr><td>Oct 2022</td><td>Pine Listing</td><td>Allows listing of collaterals for sale</td></tr><tr><td>Dec 2022</td><td>Auto roll-over</td><td>Allows borrowers to automatically rollover if LTV is below threshold</td></tr><tr><td>Q1 2023</td><td>Multi chain and currency support</td><td>Protocol extends to support multiple chains (Solana, BNBChain, AVAX, etc) and payout/repayment in more currencies (USDT, USDC, SOL, etc)</td></tr><tr><td>Q2 2023</td><td>Credit Marketplace</td><td>Allows lenders to buy and sell loan positions</td></tr></tbody></table>


# Overview

Pine protocol is a two-sided decentralized non-custodial protocol that facilitates asset-backed loan transactions between lenders and borrowers. Lenders set up their own lending pools, choose NFT collections that they are willing to lend against and set their own terms for loan offers. These offers are then added to a one-sided offer book. Borrowers can choose from these offers and borrow digital currencies against them using their NFT assets as collateral.


# Loan Structure

When a loan is initiated on the Pine Protocol, the terms and conditions for the loan are defined in a smart contract and the NFT collateral is deposited into the same smart contract. The smart contract is between the borrower and the lender and depending on different conditions, either party would have the rights to take ownership of the NFT collateral asset. As the protocol is designed to be decentralized and non-custodial, no one besides the borrower and lender would have access to withdraw the NFT from the smart contract.&#x20;

In V1 and V2 of the Pine protocol, the addresses of the lender and the borrower are written into the loan smart contract directly. This cannot be changed for as long as the loan position remains open. To make it even more decentralized and flexible, the lending and borrowing positions are tokenized as NFTs in the Pine V3 smart contract design. Any blockchain address that holds on to these NFTs would then be the lenders and borrowers for the respective loan positions.

## Promissory Note

Lenders with any active loan in their pool will receive an NFT which is a tokenized promissory note representing a claim to the principal amount and interest outstanding of a specific loan. It also gives the bearer the right to liquidate. The token is tradable in the secondary market.

## Loan Position ("LP") Token

Borrowers will receive an NFT which is a LP token representing the right to reclaim the NFT collateral ownership upon full repayment of the loan. The token can be staked on any smart contract to enjoy custodian services and third party composability.

Here are some examples:

* Auto loan rollover through a smart contract decentralized custodian
* Stake in other protocols to earn yield or provide liquidity
* The token is tradable in the secondary market


# Loan Parameters

Each lender on Pine protocol sets up their own segregated lending pool which is mapped to their wallet address on the blockchain. The lender can set how much digital currencies they would like to add to the pool and enable one or more NFT collection(s) as eligible collateral that they would like to lend against. For each collection, they would have to set up one or more loan offers. Every loan offer within an NFT collection has a unique tenor and a set of parameters for the loan terms.&#x20;

## Lenders Set Parameters

### Valuation&#x20;

The Pine pricer is the default valuation engine for NFT collections used as loan collateral on the protocol. Lenders do have the flexibility to customize the valuation by building their own pricer or plugging in a third party valuation engine.&#x20;

See the “NFT Valuation” section for more information.

{% content-ref url="/pages/eMVe9iXu6Xe0RdWSft4b" %}
[NFT Valuation](/pine-protocol/nft-valuation)
{% endcontent-ref %}

### Tenor&#x20;

As all loans on Pine are fixed-duration loans, tenor represents the duration of the loan. To avoid the problem of liquidity being too fragmented, lenders can only choose from a set of standard tenors, which are currently 7 Days & 14 Days with each day being 24 hour with reference to the blockchain timestamp starting from the block on which the loan was opened.&#x20;

### Interest Rate&#x20;

The interest rate of each loan offer is stipulated on the lender’s active offer on the Offer Book and is agreed by the borrower upon successful execution of the relevant blockchain transactions in its entirety. All annualized interest rates on the Protocol adopt the Actual/360 date count convention.&#x20;

### Initial Loan-To-Value (“LTV”) Limit&#x20;

The initial LTV limit set by the lender for each loan offer governs the maximum proportion of loan value a borrower can borrow against the valuation of the NFT collateral. For new loan, the maximum LTV limit is discounted further by the rollover LTV buffer set at the protocol level.

See the "Loan Lifecycle" section for more information.

{% content-ref url="/pages/DdKr4O9jeuUmj242Btxh" %}
[Loan Lifecycle](/pine-protocol/loan-lifecycle)
{% endcontent-ref %}

### Example of a Loan Pool&#x20;

Lender Bob opens a pool that supports 3 NFT collections as collateral

ERC-20 address: 0x37…E88A&#x20;

Pool Size: 100 ETH

<table data-view="cards"><thead><tr><th align="center"></th><th align="center"></th><th></th><th></th><th></th></tr></thead><tbody><tr><td align="center"><strong>Collection 1:</strong> <br><strong>Bored Ape Yacht Club</strong><br></td><td align="center"><img src="/files/xidUxXJtGTzxuoRqqQ60" alt=""></td><td><br>Valuation: Pine Pricer</td><td><strong>Offer 1: 7-Day</strong><br>- Interest Rate: 18% per annum <br>- Initial LTV Limit: 40%</td><td><strong>Offer 2: 30-Day</strong><br>- Interest Rate: 19% per annum<br>- Initial LTV Limit: 40%</td></tr><tr><td align="center"><strong>Collection 2:</strong> <br><strong>Doodles</strong> <br></td><td align="center"><img src="/files/mqnhO7Sg49inFTkgCUwA" alt=""></td><td><br>Valuation: Pine Pricer</td><td><strong>Offer 1: 14-Day</strong><br>- Interest Rate: 22% per annum<br>- Initial LTV Limit: 35% </td><td></td></tr><tr><td align="center"><strong>Collection 3:</strong> <br><strong>Clone X - X Takashi Murakami</strong></td><td align="center"><img src="/files/yQJ6ZEgi2M2K99FtiN8f" alt=""></td><td><br>Valuation: Pine Pricer</td><td><strong>Offer 1: 7-Day</strong><br>- Interest Rate: 22% per annum<br>- Initial LTV Limit: 40%</td><td></td></tr></tbody></table>

## Protocol Set Parameters

Besides the parameters set by the lender, there are a protocol-level few parameters that are governed by the PineDAO.

*The parameters and their current values are*

| Parameter                 | Current Value |
| ------------------------- | ------------- |
| Rollover LTV Buffer       | 3%            |
| Loan Recall LTV Threshold | 95%           |
| Liquidation Time Window   | 6 months      |

### Rollover LTV Buffer

The rollover LTV buffer is a discount factor used to derive the maximum LTV for new loans. The idea is to reduce the max LTV for new loan slightly to give a buffer for the loan to be rolled over at below the maximum LTV set by the lenders for the loan offers. By setting the new loan max LTV lower than actual loan max LTV, given if the value of the NFT collateral remains constant and depending on the amount of interest accrued, borrowers should be able to rollover new loan positions a few times before any repayment is needed.

### **Loan Recall LTV Threshold**

The Loan Recall LTV is in place to help lenders with risk management when the value of the NFT collateral drops tremendously. If the current LTV of the loan position exceeds the Loan Recall LTV during the term of the loan, lenders will have the option to recall the loan early. This threshold does not apply to any loan that is using custom NFT pricing that is not from the Pine Pricer.

### Liquidation Time Window

The liquidation time window is the amount of time lenders have to liquidate, i.e. repossess the NFT collateral asset by withdrawing it from the loan smart contract, when a loan position becomes liquifiable.

See the "Loan Lifecycle" section for more information.

{% content-ref url="/pages/DdKr4O9jeuUmj242Btxh" %}
[Loan Lifecycle](/pine-protocol/loan-lifecycle)
{% endcontent-ref %}


# Loan Lifecycle

All loans on the Protocol are structured to be secured bullet loans and interest is accrued linearly when a loan is outstanding. Principal and all accrued interest are to be paid in one payment and the NFT Collateral will be released from the custody of the loan smart contract when the loan expires. The ownership of the NFT Collateral will be returned to the borrower contingent upon all the obligations of the borrower are met.

## LTV

### Current LTV

Current LTV is an important metrics that is measured for each loan throughout its lifecycle:

$$
Current LTV = (Principal + Accrued Interest) ÷ CollateralValue
$$

### New Loan LTV Limit

The LTV limit for a new loan is derived using the initial LTV limit set for the loan offer by the lender and the rollover LTV buffer set by the protocol:

$$
New Loan MaxLTV = Initial LTV Limit \* (1-RollOverLTVBuffer)
$$

This buffer is only discounted from the max LTV limit for a newly initiated loan. It does not apply to the max LTV for loan rollover.

## Events

<table><thead><tr><th width="199">Time</th><th>Event</th></tr></thead><tbody><tr><td>T - 24H</td><td>Notifications that loan will expire in 24 hours</td></tr><tr><td>T - 2H</td><td>Notifications that loan will expire in 2 hours</td></tr><tr><td>T</td><td>Loan expires - notifications that loan has expired and if current LTV is greater than or equal to Loan Recall LTV, the loan is immediately liquidable by the lender</td></tr><tr><td>6 Months after loan became liquidable</td><td>NFT belongs to Pine protocol if no liquidation done on liquidable asset by the lender</td></tr></tbody></table>

### **Events of Loan Recall**

If the current LTV of the outstanding loan exceeds the Loan Recall LTV at any point of time, the lender is allowed to recall the loan. When a loan is recalled, the borrower will be given 24 hour to either repay the loan in full or to repay partially so that the current LTV is below the Variable LTV Limit. Loan Recall is only applicable to loans that are using the standard valuation from the Pine Pricer. In other words, if the loan was initiated from a pool that uses custom valuation, the lender cannot recall the loan within the loan term. This is to protect borrowers from valuation manipulation which will lead to malicious liquidation attempts of their loan positions.

### Roll-over

Borrowers can enter into a new term loan agreement prior to expiry of the original loan at the prevailing market offer such that the repayment can be postponed without defaulting the loan. The roll-over can only be done if the current LTV of the loan is below the maximum LTV Limit of the lending offer which the loan will be rolled over into. If the current LTV is greater than the maximum LTV of all available lending offers, then the borrower must make some payment to reduce the LTV before he/she can roll over the loan.

### Events of Default

A default happens when full repayment of the loan is not made by the borrower before or by expiry or the loan is not renewed successfully at expiry.

### **Events of Liquidation**

If the loan is not repaid the loan will become liquidable and the lender is given the right to liquidate the NFT Collateral after settling the liquidation charge. The ownership of the NFT Collateral will be transferred to the lender after successful liquidation. If the lender does not repossess the NFT Collateral 6 months after a loan becomes liquiable, ownership of the NFT Collateral will be permanently remained under the Protocol.


# NFT Valuation

The Pine Pricer is the default NFT pricing oracle for loans initiated using the Pine Protocol. But due to Pine’s focus of building a decentralized NFT-backed loan infrastructure, and to promote the trustless nature of DeFi, lenders are not bound to using the price feeds provided by Pine Pricer. Using Pine could be a completely trustless experience.

## Pine Pricer

Governed by the PineDAO, Pine Pricer is an NFT pricing oracle that provides a fair and transparent price feed for the value of NFT collaterals for all loan obligations. Pine pricer powers all stages of the loan cycle from the loan origination, to the loan recall and the loan roll-over processes by providing reproducible pricing information for individual NFTs to use in LTV calculation.

### Price Manipulation Attack

Loan pools on Pine are susceptible to price manipulation attacks. Here is an example:

* Assuming the floor price of an NFT collection is *f1*.&#x20;
* Attacker uses *$x* to buy *n* pieces at the floor in a short period of time to drive the floor price to *f2*.&#x20;
* Attacker immediately takes out a loan of *$(n \* f2 \* LTV)* from lenders using the NFTs.&#x20;
* As long as that the loan amount is greater than the original purchase amount, i.e. *$(n \* f2 \* LTV) > $x*, the attacker can default on all the loan positions and walk away with a profit.&#x20;
* And if *f2 > (f1 \* Loan Recall LTV)* and the floor price reverts back to *f1*, the lenders would have to sell the *n* NFTs at a loss.

In essence, the attacker manipulated the prices so that he could get around the initial LTV limit that lenders set to give them a buffer against price volatility.

### Methodology

The Pine pricer is designed to produce a more conservative valuation in order to help lenders mitigate risk associated with price manipulation, transitory volatility or short-term data feed glitches. Where applicable:&#x20;

* Last traded (i.e. transacted) prices are used as a sanity check against the floor prices Prices are cross referenced across multiple sources (e.g. Opensea, LooksRare, NFTBank) and outliers are dropped&#x20;
* Price feed data is smoothed using mechanisms such as TWAP&#x20;
* Loan amount throttling limits the amount of loan backed by an NFT collection within a time window

Price feed monitor is also a critical component of the Pine Pricer. When the price for an NFT collection becomes unavailable, no new loan obligation can be opened for that NFT collection.

## Custom Valuation

Lenders can utilize a SDK to plug in their own custom pricing, and the lender would be a signer for the oracle instead of Pine, completely preventing Pine from becoming a supply chain attack vector. Besides building their own valuation oracle, lenders can also choose to integrate NFT valuation oracles from 3rd parties providers.

There will be some differences in the experience using a custom valuation oracle vs Pine Pricer.

|             | Pine Pricer                                                  | Custom Valuation Oracle                                                                                                                         |
| ----------- | ------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------- |
| Valuation   | Mostly collection floor prices from popular NFT marketplaces | Completely custom - flexiblility to allow for floor prices for specific traits within an NFT collection                                         |
| Loan Recall | Yes                                                          | No - this is to prevent lenders from manipulating the custom valuation in order to cause malicious loan recalls that lead to unfair liquidation |
|             |                                                              |                                                                                                                                                 |


# Protocol Fee

Pine's fee structure has been purposely designed to make the protocol sustainable and scalable.

### Fee Values

The Pine Protocol fees are governed by the PineDAO. This values are:

<table><thead><tr><th width="279">Fee</th><th width="348">Value</th><th>Status</th></tr></thead><tbody><tr><td>Interest Rate Spread</td><td>minimum split % = 2%<br>base = 10</td><td>Live</td></tr><tr><td>Early Repayment Interest Discount %</td><td>50% of remaining interest fee payable</td><td>Coming Soon</td></tr><tr><td>Late Repayment Interest Multiplier</td><td>10X</td><td>Coming Soon</td></tr><tr><td>Liquidation Fee</td><td>25%</td><td>Coming Soon</td></tr><tr><td>Pine Listing Transaction Fee</td><td>0.3%</td><td>Coming Soon</td></tr></tbody></table>

### Interest Rate Spread

The Protocol charges an interest rate spread between the rate the borrower pays and the lender receives on every Transaction happens via the Protocol. The fee is determined algorithmically depending on the lender rate and pricing parameters of the Protocol.

$$
splitPercent = min SplitPercent + log(1+lenderRate, base)
$$

<figure><img src="/files/8pkGvIOirj7ea83qZGsB" alt=""><figcaption><p>Based on current fee parameters set by the Pine Protocol as of September 2022</p></figcaption></figure>

### Early Repayment Fee

In the event of early repayment (i.e. repaying all or any amount of the outstanding loan before the end of the term), the borrower is liable for any interest accrued up till that point of time. On the portion that is repaid early before the end of the term, the borrower is liable for a portion of the interest that is supposed to have accrued if the repayment is done at the end of the term. The portion is calculated using the Early Repayment Interest Discount %.

### Late Repayment Surcharge

After a loan has expired, the interest rate chargable would be equivalent to the original interest rate times the Late Repayment Interest Multiplier.

### Liquidation Fee

In the event of liquidation, the lender is charged a percentage, equivalent to the Liquidation Fee %, of the value of the NFT Collateral above the value of outstanding loan. Lenders would have to pay this fee when they withdraw the NFT collateral from the smart contract of the loan in default.

$$
liqFee = liqFeePercent \* (currentCollateralValue - outstandingLoanAmount)
$$

The charge is waived in the case of liquidation at a loss when the value of the outstanding loan exceeds the value of the NFT Collateral.

### Pine Listing Fee

With Pine Listing (see [Pine Listing](/pine-features/pine-listing) for more information), borrowers can list their NFT for sale even when they are being used as collateral for loans. The protocol charges a Pine Listing Sales fee on the amount the NFT is sold for.

### Previous Fee Structure

In the previous version (Pine Protocol V2), the fee structure is a simple flat fee of 0.01 ETH and 0.35% of the total loan amount paid by the borrower. Some of the current lending pools might still be on this fee structure but will be all be migrated to V3 in the near future.


# Compliance

Pine protocol is designed to be decentralized and permissionless and hence the protocol does not obtain or keep any KYC information on its users. To the protocol, lenders and borrowers are merely wallet addresses on the blockchain.&#x20;

Pine protocol works with reputable blockchain address screening service providers to help its users in mitigating risk of dealing with high risk addresses, i.e. ones that are sanctioned or involved in criminal activities. Lenders and borrowers with blockchain addresses that have been verified to be low-risk can choose to transact only with other users with low-risk addresses on the protocol.&#x20;

Specifically on the lenders’ side, the segregated pool design of the Pine protocol does effectively lower risks for lenders. As every lender must set up and operate their own segregated pool, their asset is never commingled with other lenders. This drastically reduces compliance and regulatory risk for lenders on the Pine protocol as compared to some of the other NFT-backed loan protocols or platforms.


# Team

Meet the Pine Team 🌲

Pine brings together a globally distributed team of web3 innovators with the shared goal of building sophisticated on chain credit solutions.\
\
Crypto-native blockchain engineers are building the protocol alongside a management team with deep experience in TradFi (combined 30+ years), quantitative trading, asset management, and building new businesses.

Want to reach out to the team or just drop a GM? You can always find us hanging out in our Discord server: [Discord.gg/PineProtocol](http://discord.gg/PineProtocol)

## The Pine Team

<table data-view="cards"><thead><tr><th></th><th></th><th></th><th data-hidden data-card-cover data-type="files"></th></tr></thead><tbody><tr><td>Alex<br><strong>CEO</strong></td><td><img src="/files/AeF5MeArS3p6BUql9EJ8" alt=""></td><td><br>Twitter: <a href="https://twitter.com/alextatdev">@alextatdev</a></td><td></td></tr><tr><td>Misha<br><strong>CTO</strong></td><td><img src="/files/Jxwfn9Rk12RGfd7DVUy7" alt=""></td><td><br>Twitter: <a href="https://twitter.com/pine_proto_dev">@pineprotodev</a></td><td></td></tr><tr><td>Tgen<br><strong>Head of Strategy</strong></td><td><img src="/files/IT0v3ieUP07nr78Xkp4B" alt=""></td><td><br>Twitter: <a href="https://twitter.com/quant_degen">@quant_degen</a></td><td></td></tr><tr><td><p>EJ</p><p><strong>Community Manager</strong></p></td><td><img src="/files/1Rse5SOcXCVr9VkZoa6P" alt=""></td><td><br>Twitter: <a href="https://twitter.com/PrinceGoomba">@PrinceGoomba</a></td><td></td></tr><tr><td>Miklos<br><strong>Product Manager</strong></td><td><img src="/files/fcJCsSARpQygvU0SfTrM" alt=""></td><td><br>Twitter: <a href="https://twitter.com/MKekkoi">@MKekkoi</a></td><td></td></tr><tr><td>Max</td><td><strong>Full-Stack Engineer</strong><br><img src="/files/CiFpIrHNPvJNJ7FEh2yB" alt=""></td><td><br>Twitter: <a href="https://twitter.com/konoplinskyi">@konoplinskyi</a></td><td></td></tr><tr><td>Dan</td><td><strong>Full-Stack Engineer</strong><br><img src="/files/YoLW5aubVjP2Mgm4GKKQ" alt=""></td><td></td><td></td></tr><tr><td>Emily<br><strong>Operations Manager</strong></td><td><img src="/files/8g12gNfjFcH6py4LFa6S" alt=""></td><td></td><td></td></tr></tbody></table>


# Pine Now Pay Later (PNPL)

NFT buyers can get a mortgage for the NFT purchase on open marketplaces in one atomic transaction. The transaction will be settled with funds from the buyer’s wallet and loan from the protocol in a ratio that the buyer deem appropriate and can satisfy the loan’s LTV requirements. The newly acquired NFT will be owned by the protocol as a collateral for the loan that the buyer initiated during the transaction in the same way as an ordinary NFT loan.

The end result is exactly the same for Pine Loan and PNPL. The difference is only in the sequence of events.

#### Pine Loan

1. Alice owns an NFT&#x20;
2. Alice pledges that NFT to a lending pool on the Pine protocol to get a loan&#x20;
3. Alice gets extra ETH equivalent to the loan amount in her wallet&#x20;
4. Alice has an NFT-backed loan position and when she pays back the amount owed for the loan position, she will receive the NFT in her wallet

#### PNPL

1. Alice has some ETH in her wallet and wants to purchase an NFT on OpenSea from a collection that has supported loan pool(s) on the Pine protocol&#x20;
2. In one atomic transaction&#x20;
   * Alice gets a loan from a loan pool&#x20;
   * Alice pays ETH from her wallet&#x20;
   * Alice buys the NFT from OpenSea&#x20;
3. Alice has an NFT-backed loan position and when she pays back the amount owed for the loan position, she will receive the NFT in her wallet

This service can effectively facilitate NFT margin trading with only a fraction of the initial cost in acquiring an NFT, providing leverage to traders in a simple atomic transaction. With a term loan instead of continuous loan structure, traders face less pressure from the price volatility and a longer runway before a margin call is triggered.


# Bid Now Pay Later

Built on top of Pine Now Pay Later to enable users to place bids instead of taking market offers directly. With this feature, users are able to place a bid for a particular NFT without holding the equivalent amount of ETH in their wallets. A bid can be placed via our smart contract with margin in a fraction of the total amount. Whenever a user places an active bid via Pine, a loan is granted against the ETH margin to finance the leverage bid. After the acquisition goes through, the loan would become a regular Pine loan with the NFT serving as collateral.


# Bulk Borrowing

Bulk borrowing is a feature to smoothen the BNPL and BidNPL processes and enable bid and purchase of NFT with 0 ETH balance from buyer’s wallet. It is a one click solution which scans the borrower wallet for all pledge-able NFT collaterals and borrows the highest amount borrowable with the best offers on the respective collections in one transaction.

1. Alice would like to place a bid for an AZUKI at 5ETH but her wallet has 0 ETH&#x20;
2. Alice borrows 2.5ETH against her other NFTs in the wallet&#x20;
3. Alice places a the 5ETH bid via Pine and transfers 2 .5ETH as margin&#x20;
4. The bid was filled and the acquired AZUKI is managed by PINE as collateral for the 2.5ETH loan&#x20;
5. Alice can repay the 2.5ETH loan and interest to reclaim the acquired AZUKI


# Pine Listing

Collateralized NFT can still be available for listing. A borrower can submit an active offer for their NFT collateral with desired price on our platform for listing.

Pine protocol charges 0.3% transaction fee from the seller and can potentially be lower depending on the seller’s VIP tier and charges no transaction fee from the buyer. Gas fee will be paid by the seller when submitting an offer to the blockchain, and the buyer when submitting a purchase transaction. The submitted offers will be listed on multiple platforms. Offer price cannot be lower than the total outstanding amount of the loan.

Once the collateral is sold, the debt would be automatically repaid and any excess amount would be sent to the seller’s wallet. Whenever the outstanding amount exceeds the offer price, the offer will be voided and no purchase can go through.

Together with the financing features for purchasing NFTs, this feature would enable margin trading on NFTs, providing leverage for short-term traders.


# Credit Risk

## Lender Obligations

The lender is obliged to lock funds on the Protocol in order to submit active offers. Once an offer is accepted, the funds become unavailable to the lender until termination of the term loan. In the event of liquidation, the lender is obliged to absorb losses due to credit events and pay liquidation fee to the Protocol whenever applicable.

## Borrower Obligations

By entering into a term loan agreement, the borrower is obliged to lock the NFT Collateral on the Protocol until the loan and relevant charges are fully repaid. In the event of liquidation, the borrower will lose ownership of the NFT Collateral permanently. Each loan position is isolated and any credit event occurring to a loan position does not affect the status of any other loan that belongs to the same counterparty.


# Smart Contract Audit

#### Pine V2 was audited by QuantStamp

{% embed url="<https://878593246-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fx2kcknwVE1ikWzd0nPDQ%2Fuploads%2FeTag4DBkct3MxOr1Zpgo%2FPine%20-%20Final%20Report.pdf?alt=media&token=4859ad3c-0fdc-4542-ab94-db06bdf4c226>" %}

#### Pine V1 was audited by Nassec

{% embed url="<https://878593246-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fx2kcknwVE1ikWzd0nPDQ%2Fuploads%2FNKoQ5IchLRSVbCC2uaSe%2FFinal%20Audit%20Report%20-%20Pine%20Protocol.pdf?alt=media&token=3352dddd-efb0-4c49-ab5b-0d2ca031cafc>" %}

####


# Overview

The PineDAO is Pine’s community-owned DAO which plays an active role as a liquidity provider and incubator within the NFT space, with the focus on driving the adoption of NFT technology and the development of NFTFi solutions.

The Pine Token ("$PINE") is the ecosystem token for the Pine Protocol issued by the PineDAO. The structure, distribution, emission schedule and utilities of $PINE have been designed meticulously to make the protocol scalable and sustainable.


# Pine Token

PINE is the ecosystem token for the Pine Protocol and the PineDAO

* It will be initially launched on ETH Mainnet and Polygon
* It serves primarily as a transactional, utility and governance token

## Token Structure

There are 3 classes of the PINE token, namely PINE, vePINE, and sbPINE.

<table><thead><tr><th width="110">Symbol</th><th width="88">Name</th><th width="129">Function</th><th width="108">DAO Vote</th><th width="130">Transferrable / Tradable</th><th>Detail</th></tr></thead><tbody><tr><td>PINE</td><td>Pine Token</td><td>Unit of account for the Pine protocol</td><td>No</td><td>Yes</td><td>You can buy and sell Pine in the open market. Protocol incentives are paid in Pine.</td></tr><tr><td>sbPINE</td><td>Soul-bound Pine Token</td><td>Accounting unit used to represent burnt Pine tokens</td><td>Yes</td><td>No</td><td>You will receive sbPINE when you burn PINE and the sbPINE will be soul-bound to you.</td></tr><tr><td>vePINE</td><td>Vested Pine Token</td><td>Accounting unit used to represent staked Pine tokens</td><td>Yes</td><td>No</td><td>You will receive vePINE over time when you stake PINE. When you unstake PINE, the balance of your vePINE will be reset proportionally.</td></tr></tbody></table>

### PINE Token

PINE token is tradable and transferable, it is the unit of account for the Pine ecosystem. Pine Protocol users can get access to utilities by holding on to PINE tokens.

#### Distribution

The total supply of token is hard capped at 200,000,000 and the distributions are as follows.

*Last Updated: February 5, 2023*

<table><thead><tr><th width="139">Category</th><th width="90" align="right">Alloc</th><th width="130" align="center">Amt</th><th width="393">Emission</th></tr></thead><tbody><tr><td>Team</td><td align="right">18.00%</td><td align="center">36,000,000</td><td>0% at TGE, 2% unlock at month 6, 98% linearly from month 7 to month 36</td></tr><tr><td>Seed</td><td align="right">7.90%</td><td align="center">15,808,990</td><td>2.5% at TGE, 97.5% linearly from month 2 to month 18</td></tr><tr><td>Private &#x26; Advisors</td><td align="right">8.15%</td><td align="center">16,303,945</td><td>0% at TGE, 3% at month 3, 97% linearly from month 4 to month 21</td></tr><tr><td>IDO &#x26; Listing</td><td align="right">0.80%</td><td align="center">1,590,000</td><td>100% at TGE</td></tr><tr><td>Incentives</td><td align="right">24.00%</td><td align="center">48,000,000</td><td>Managed by the DAO but initially set to monthly over 4 years</td></tr><tr><td>Liquidity</td><td align="right">2.00%</td><td align="center">4,000,000</td><td>100% at TGE</td></tr><tr><td>Bonding</td><td align="right">2.00%</td><td align="center">4,000,000</td><td>Monthly over 6 months</td></tr><tr><td>Partnership &#x26; Growth</td><td align="right">19.15%</td><td align="center">38,297,065</td><td>Quarterly over 2 years, burned if not used</td></tr><tr><td>Treasury</td><td align="right">18.00%</td><td align="center">36,000,000</td><td>Linearly over 12 months; locked up and managed by the DAO</td></tr></tbody></table>

### Vested PINE Token

vePINE is a virtual token created to be awarded to stakers of PINE. vePINE is awarded following a schedule which is governed by the PineDAO. According to the initial schedule, vePINE will be automatically minted and distributed to stakers of PINE. The amount of vePINE received is a function of the time and amount of PINE that the user stakes. The entitlement to vePINE will be revoked if a user unstakes any portion of PINE proportionate.

$$
vePine\_{amt}(t\_{stakedPine}) = PineStaked\_{amt} \* (2^{t\_{stakedPine}/36*360*24\*3600}-1)
$$

<figure><img src="/files/N5WwpHM3y1xWGNlh9Y8g" alt=""><figcaption><p>Amount of vePINE gained per PINE staked over time (in month)</p></figcaption></figure>

### Soul-bound PINE Token

sbPINE is minted from burning PINE. There is no distribution schedule for sbPINE. The token can be minted instantly with no restrictions. sbPINE serves as a reward for perpetual ownership of PINE to our most loyal investors. sbPINE serves as another way to obtain a higher VIP level much earlier than someone who goes the staking and vePINE path.

### Utilities

#### PINE Token

***Auto-Roll Over***

By holding PINE in your wallet, the loans associated with the wallet are entitled for auto-rollover. If at rollover time the user’s loan needs top-up, PINE will be deducted from the users wallet and be converted to ETH or MATIC for top-up.

A loan can only be rolled over automatically if:

* The loan that the user is rolling over DOES NOT require topping-up **OR**
* There is enough unstaked PINE in the user’s wallet to cover the amount of repayment required to top up the loan.

The auto-rollover service costs 10 PINE per rollover and is conducted one day before the loan's expiration date. However, if a user holds more than 10% of PINE in USD value to the current loan amount or 1000 PINE, whichever is higher, the service is provided for free.

***White-label access for Partners***

Partners of Pine Protocol can engage the team to set up a white-labeled version of the protocol when they satisfy a certain amount of PINE holdings.

#### vePINE and sbPINE Token

Besides being the governance tokens for the PineDAO (see next section for more detail), vePINE and sbPINE together serve as the VIP membership proof and utility token within the Pine ecosystem. For the sake of unifying terminologies when explaining the utilities and use in formulas, they will collectively be called uPINE in the rest of the whitepaper. However, it is important to note that sbPINE and vePINE are calculated against their own respective total supply when used in formulas without exception.&#x20;

For example, if uPINE is used in such a formula:&#x20;

$$
f(\frac{uPINE\_{holding}}{uPINE\_{supply}})
$$

it can be expanded into&#x20;

$$
f(\frac{vePINE\_{holding}+sbPINE\_{holding}}{vePINE\_{supply}+sbPINE\_{supply}})
$$

This also implies that one user could go both the vePINE path and sbPINE path and reap benefits from both paths.

***Fee discount for borrower***

The formula for fee discount is as follows

$$
0.5^{200\*\frac{uPine\_{holding}}{uPine\_{supply}}}
$$

&#x20;For example, a user holds 0.25% of total vePINE supply and 0.1% of total sbPINE supply, the user will get a total of&#x20;

$$
min(1,1-0.5^{200*0.0025}+1-0.5^{200*0.001})
$$

i.e. 42% discount

***Boosted lender ranking for lender***

$$
1-0.5^{200\*\frac{uPINE\_{holding}}{uPINE\_{supply}}}
$$

more exposure to borrowers through the loan offer book. The loan offer book works in a way such that similar offers are put into the same queue and displayed to borrowers in a round robin fashion. However, if a lender owns uPINE, there is a 1 in X chance that the lender will get featured again without being thrown to the back of the end of the queue.

## Bonding

#### Protocol owned liquidity

2% of PINE will be available over 6 months as bonds to liquidity providers of PINE token at an initial coupon rate of approximately 4%, which translates to roughly 0.3% per month. The time to maturity for the bonds will be 14 days. The team reserves the rights to end the bonding program early and burn the remaining tokens or send the remaining tokens to the DAO’s treasury.

##


# PineDAO

PineDAO is completely autonomous through decentralized votes conducted amongst vePINE and sbPINE holders.&#x20;

vePINE and sbPINE are equivalent in value and will grant holders access to:

* create DAO proposals
* vote on DAO proposals
* receive DAO rewards

PineDAO Snapshot Link: <https://snapshot.org/#/pineprotocol.eth>

## Key DAO Activities

Below are the key activities of the PineDAO

**Manage the treasury of Pine Protocol**

* Fee from Pine loans, i.e. interest rate spread
* Auto-rollover fees
* Liquidation fees

**Provide liquidity in NFTFi**

This is done both on Pine Protocol and other reputable NFTFi platforms / protocols.

* Interest yield
* Liquidation proceeds
* Other fees associated to liquidity provision

**NFTFi Ecosystem Partnership**

* Incubating and investing in other NFTFi platforms and protocols
* Liquidity mining using tokens the DAO received as protocol fees (e.g. BEND, JPEG)

## Staking & Incentive Governance

To allow for better granularity, the DAO reward distribution is organized in Ages and Epochs, which is inspired by Morpho (<https://www.morpho.xyz/>). The goal of this system is to bootstrap the protocol while progressively decentralizing its governance.

### Background

Usually, DeFi protocols schedule emissions and hardcode their reward system years in advance. This is not the case with Pine. We believe that Pine's needs will quickly evolve and that a long-term emission schedule may turn out to be too rigid.

Thus, Pine's reward distribution is organized in Ages. An Age lasts around three months and sets new rules for reward emissions according to the protocol's needs.

Each age is subdivided into smaller periods named epochs. Epochs are regular interval checkpoints within the Age where users can claim rewards (e.g., with a Merkle tree drop).

### Approach

#### Age

The rules for the first two Ages, namely Age 1 and Age 2, will be pre-determined by the Pine team. Starting from Age 3 and onwards, a proposing and voting mechanism is conducted before the beginning of each Age to set the rules.

#### Incentives

There are two types of incentives, i.e. DAO reward, that are governed by the PineDAO

<table><thead><tr><th width="162.33333333333331">Type</th><th width="180">Awarded To</th><th>Calculated By</th></tr></thead><tbody><tr><td>Staking Reward</td><td>vePine &#x26; sbPine holders</td><td>holding amounts are calculated off-chain and verified on-chain</td></tr><tr><td>Protocol Incentives</td><td>Users of the Pine protocol</td><td>protocol activities are calculated off-chain and verified on-chain</td></tr></tbody></table>

#### Rules

For each age, the main rules would be:

* Length of each Epoch (the default is 1 week per epoch)
* Total amount of incentives to be distributed in PINE token and the breakdown for each categories, such as:
  * staking reward
  * protocol incentives (borrower)
  * protocol incentives (liquidity provider)

Once the DAO proposal is passed for a specific Age, anyone can compute the rewards earned by every user at each epoch. For example, one could look at emitted events to rebuild the state of a user in Typescript. We will open-source a script for Ages calculations.


# Age 1

**Last Updated: March 30, 2023**

## Objectives

* Distribute pre-TGE protocol fees
* Kickstart the decentralization of the protocol
* Bootstrap Pine Protocol usage

## Parameters

<table><thead><tr><th width="262">Field</th><th>Value</th></tr></thead><tbody><tr><td>Age Start Time</td><td>17 Feb 2023 UTC 08:00</td></tr><tr><td>Age End Time</td><td>12 May 2023 UTC 08:00</td></tr><tr><td>Epoch Length</td><td>1 week</td></tr><tr><td>Epoch Endtime</td><td>E01: 24 Feb 2023 UTC 08:00<br>E02: 3 Mar 2023 UTC 08:00<br>E03: 10 Mar 2023 UTC 08:00<br>E04: 17 Mar 2023 UTC 08:00<br>E05: 24 Mar 2023 UTC 08:00<br>E06: 31 Mar 2023 UTC 08:00<br>E07: 7 Apr 2023 UTC 08:00<br>E08: 14 Apr 2023 UTC 08:00<br>E09: 21 Apr 2023 UTC 08:00<br>E10: 28 Apr 2023 UTC 08:00<br>E11: 5 May 2023 UTC 08:00<br>E12: 12 May 2023 UTC 08:00</td></tr><tr><td>Rewards Claim Time <em><strong>(new)</strong></em></td><td>24 hours after the end of each Epoch</td></tr><tr><td>Total Incentive</td><td>3,000,000 PINE (1.5% of total supply)</td></tr><tr><td>Incentive Amt for vePine &#x26; sbPine holders</td><td><p>500,000 PINE (0.25% of total supply) + </p><p>8.3 ETH (Pine protocol fee accrued pre-TGE)</p></td></tr><tr><td>Incentive Amt for borrowers</td><td>1,500,000 PINE (0.75% of total supply)<br><br>- 70% allocated to borrowers based on ETH amount borrowed<br>- 30% allocated to borrowers based on value of NFTs escrowed (i.e. sum of the floor value of NFTs being used as collateral for loans)</td></tr><tr><td>Incentive Amt for lenders</td><td>1,000,000 PINE (0.5% of total supply), of which<br><br>- 70% allocated to lenders based on ETH amount lent out<br>- 30% allocated to lenders based on ETH amount permissioned into lending pools</td></tr></tbody></table>

## Rules

* Incentives will be unlocked in a linear fashion - i.e. in each epoch, 250,000 PINE will be allocated to eligible users
* Staking reward will be allocated based on daily snapshots of vePINE and sbPINE holding and will be available for withdrawal at the end of each epoch.
* Protocol incentives will be allocated based on hourly snapshot of borrowing and lending activities on the Pine protocol. Protocol incentives awarded can only be withdrawn at the end of each epoch.
  * ***(new)*** Before each Epoch, a community vote will determine if protocol incentives rewards should be granted for the coming Epoch
* The DAO has the power to vote on amending the parameters and the vesting schedule of the rewards.
* Incentives not distributed could be burnt at the discretion of the DAO.
* ***(new)*** The protocol and DAO has full discretion to disqualify any rewards earned via illicit activities, e.g. lending and borrowing activities using a fake NFT collection. The protocol and DAO strongly discourage any wash transaction activities.


# Age 2

## Objectives

* Distribute pre-TGE protocol fees
* Bootstrap Pine Protocol usage

## Parameters

<table><thead><tr><th width="262">Field</th><th>Value</th></tr></thead><tbody><tr><td>Age Start Time</td><td>19 May 2023 UTC 08:00</td></tr><tr><td>Age End Time</td><td>04 Aug 2023 UTC 08:00</td></tr><tr><td>Epoch Length</td><td>1 week</td></tr><tr><td>Epoch Endtime</td><td>E01: 19 May 2023 UTC 08:00<br>E02: 26 May 2023 UTC 08:00<br>E03: 02 Jun 2023 UTC 08:00<br>E04: 09 Jun 2023 UTC 08:00<br>E05: 16 Jun 2023 UTC 08:00<br>E06: 23 Jun 2023 UTC 08:00<br>E07: 30 Jun 2023 UTC 08:00<br>E08: 07 Jul 2023 UTC 08:00<br>E09: 14 Jul 2023 UTC 08:00<br>E10: 21 Jul 2023 UTC 08:00<br>E11: 28 Jul 2023 UTC 08:00<br>E12: 04 Aug 2023 UTC 08:00</td></tr><tr><td>Rewards Claim Time</td><td>24 hours after the end of each Epoch</td></tr><tr><td>Total Incentive</td><td>1,747,992 PINE (0.85% of total supply)</td></tr><tr><td>Incentive Amt for vePine &#x26; sbPine holders</td><td><p>500,000 PINE (0.125% of total supply) + </p><p>8.3 ETH (Pine protocol fee accrued pre-TGE)</p></td></tr></tbody></table>

## Rules

* Incentives will be unlocked in a linear fashion - i.e. in each epoch, 250,000 PINE will be allocated to eligible users
* Staking reward will be allocated based on daily snapshots of vePINE and sbPINE holding and will be available for withdrawal at the end of each epoch.
* Protocol incentives will be allocated based on hourly snapshot of borrowing and lending activities on the Pine protocol. Protocol incentives awarded can only be withdrawn at the end of each epoch.
* The DAO has the power to vote on amending the parameters and the vesting schedule of the rewards.
* Incentives not distributed could be burnt at the discretion of the DAO.
* ***(new)*** The protocol and DAO has full discretion to disqualify any rewards earned via illicit activities, e.g. lending and borrowing activities using a fake NFT collection. The protocol and DAO strongly discourage any wash transaction activities.


# Age 3

## Parameters

<table><thead><tr><th width="262">Field</th><th>Value</th></tr></thead><tbody><tr><td>Age Start Time</td><td>04 September 2023 UTC 08:00</td></tr><tr><td>Age End Time</td><td>02 Feb 2024 UTC 08:00</td></tr><tr><td>Epoch Length</td><td>4 weeks</td></tr><tr><td>Epoch End Time</td><td>E01: 02 Oct 2023 UTC 08:00<br>E02: 02 Nov 2023 UTC 08:00<br>E03: 02 Dec 2023 UTC 08:00<br>E04: 02 Jan 2023 UTC 08:00<br>E05: 02 Feb 2024 UTC 08:00</td></tr><tr><td>Rewards Claim Time</td><td>24 hours after the end of each Epoch</td></tr><tr><td>Incentive Amt for vePine &#x26; sbPine holders</td><td>225,000 PINE (0.11% of total supply)</td></tr></tbody></table>

## Rules

* Incentives will be unlocked in a linear fashion - i.e. in each epoch, 45,000 PINE will be allocated to eligible users
* Staking reward will be allocated based on daily snapshots of vePINE and sbPINE holding and will be available for withdrawal at the end of each epoch.
* The DAO has the power to vote on amending the parameters and the vesting schedule of the rewards.


# Guides Overview

Curious to see Pine Protocol in action before trying it out?

Don't miss a beat with all of our tailored step-by step guides to steer you into the right direction.

At Pine we are constantly innovating and providing new features to make buying, borrowing, selling or lending not only easier, but also more flexible and fun making the Pine Platform the premium and most complete NFT-backed loan platform.

\
**Borrowing**\
Own an NFT? See how to get liquidity here by taking out a loan instantly in a permission-less way.\
\
📜 Text Guide: [Borrowing](/pine-guides/borrowing)\
📺 Video Guide: [https://www.youtube.com/watch?v=yUzjTMpvY7Q ](https://www.youtube.com/watch?v=yUzjTMpvY7Q)

{% embed url="<https://www.youtube.com/watch?v=yUzjTMpvY7Q>" %}
Video Guide by our own Community Manager, EJ!
{% endembed %}

**Lending**\
Looking for yield for your digital assets? Or, if you are an NFT project founder, do you want to provide additional utility for your holders? Whatever reason you might have to become a lender, you will find all the details below.

1. **NFTs**\
   📜 Text Guide: [Lending (NFTs)](/pine-guides/lending-nfts)\
   📺 Video Guide: TBA
2. **SFTs**\
   📜 Text Guide: [Lending (SFTs)](/pine-guides/lending-sfts)\
   📺 Video Guide: TBA

**Pine Now Pay Later**\
Looking to buy a brand new NFT, but you're short on liquidity or prefer to reduce price risk by only paying a portion of the price up-front? Pine Now Pay Later makes it easy, letting you take out a loan instantly!\
\
📜 Text Guide: [Pine Now Pay Later](/pine-guides/pine-now-pay-later)\
📺 Video Guide: TBA

**Staking & Burning**\
Looking to earn passive yield on your $PINE tokens? We support Staking & Burning! 💚

📜 Text Guide: [Staking & Burning](/pine-guides/staking-and-burning)\
📺 Video Guide: TBA

**Governance Voting**\
When staking and burning you automatically accumulate Pine Governance Units. As we are a fond believer of decentralization, we encourage everyone to participate in proposals and use your voting power for the greater good of Pine 🌲

📜 Text Guide: [Governance Voting](/pine-guides/governance-voting)\
📺 Video Guide: TBA

<br>

Also check out our [General](/faqs/general) FAQs section or join our Discord to get support directly from the team at [**https://discord.gg/pineprotocol** ](https://discord.gg/pineprotocol)


# Borrowing

🌲 Pine Protocol: Opening a Loan using your NFT as collateral

<figure><img src="/files/CZbobibJGvXm6yCpghcj" alt=""><figcaption><p><strong>If you have questions, trouble, suggestions etc. at any time, then we’ll be directly available in Discord to help you out:</strong> <a href="www.discord.gg/pineprotocol"><strong>https://discord.gg/pineprotocol</strong></a></p></figcaption></figure>

**⚠️ Always ensure that you’re on the right domains ⚠**\
\- pine.loans\
\- app.pine.loans

*We advise to bookmark the URLs to prevent going into possible phishing websites that are using similar names* 📗

**💵 Receive ETH using your NFT**

👉 Head over to <https://pine.loans/> and select “Launch App”

<figure><img src="/files/MVtZW8ZaItxRn4W457Q7" alt=""><figcaption><p>or proceed directly to <a href="https://app.pine.loans/borrowing/nfts">https://app.pine.loans/borrowing/nfts</a></p></figcaption></figure>

👉 Head over to “Borrowing”&#x20;

<figure><img src="/files/ZAJcHgFEMn45jVxDNZi3" alt=""><figcaption></figcaption></figure>

👍 Select “Get Started”

<figure><img src="/files/AEsHcErVLWMAlfXGXsKq" alt=""><figcaption></figcaption></figure>

👀 You should now be presented with all NFT’s / SFTs in your collection under that specific wallet. Be sure to select the corresponding supported chain!

<figure><img src="/files/z9B8OIY92Ck6rAqYXWRN" alt=""><figcaption></figcaption></figure>

☝️ Alternatively, you can use our brand-new Add to Cart feature by visiting a specific collection which you own the NFT / SFT of.

Simply head over to that collection in the main Pool overview page (for example WonderPals):

<figure><img src="/files/XHk4DX7ttmDHXJl9j8xk" alt=""><figcaption></figcaption></figure>

👉 Now select the NFTs tab

<figure><img src="/files/hD9nBv55CmXUbIAYb6Ih" alt=""><figcaption></figcaption></figure>

✅ Select the NFTs of your preference and proceed with the "Add to cart" button:

<figure><img src="/files/ioFDzTXW6jN9Lnhjto0t" alt=""><figcaption></figcaption></figure>

👀 You should now notice a number being added to the Cart button at the top-right of the screen:

<figure><img src="/files/QvOqYxcpwNMnYG95wM0B" alt=""><figcaption></figcaption></figure>

✅ Once opened the Cart will display all the NFTs you have added to your Cart:

<figure><img src="/files/NuKXEdoRYrw6lUBYRdSK" alt=""><figcaption></figcaption></figure>

👉 When you're ready to see the Borrowing details, select the Go to summary button:

<figure><img src="/files/lnrdN0WtFb0tItwELlR7" alt=""><figcaption></figcaption></figure>

👀 Here you will be presented with all the NFTs that have been selected in the previous Borrowing page:

<figure><img src="/files/EalUu374Mc26LYIXyZvE" alt=""><figcaption></figcaption></figure>

👉 By selecting an NFT you can browse through different terms (pools) that better meet your criteria and allow you to set a specific loan amount:

<figure><img src="/files/EEIrT7KOCHhI8zMUiTTm" alt=""><figcaption></figcaption></figure>

👍 You will now be presented with the Valuation screen for that specific NFT:

<figure><img src="/files/IB5SuRKlnA5YJsnxDZqZ" alt=""><figcaption></figcaption></figure>

\
✅ By default the most favorable pool is selected for you to borrow against. However always explore multiple pool options to see if one exists that better meets your criteria:

<figure><img src="/files/MCnGxVzWHkN5OTkQwSLt" alt=""><figcaption></figcaption></figure>

👉 After having selected a pool we can proceed to set the amount you want to borrow by moving the slider or selecting “Set Max”

<figure><img src="/files/Dn61WtADhl1umaERtcHN" alt=""><figcaption></figcaption></figure>

👍 When you want to proceed ensure you approve the collection first if not done so yet:

<figure><img src="/files/LyL6zEKrWro9FVA0ZdlW" alt=""><figcaption><p><strong>🦊 Approve the transaction when prompted</strong></p></figcaption></figure>

👀 You should see a pop-up that your transaction is processing on the blockchain

⏲️ And simply wait for it to be completed

<figure><img src="/files/734XYcDUeAwGnMl0J0jn" alt=""><figcaption><p><em><strong>(you may receive a “Valuation Expired” message if the previous “Approve Collection” transaction took a long time to process. Simply refresh the page and try again)</strong></em></p></figcaption></figure>

👉 Do this for every NFT listed and once you're ready to go simply proceed by selecting "Borrow".

<figure><img src="/files/CqJfBDCI2W6IyAurhrpy" alt=""><figcaption><p><strong>🦊 Approve the transaction when prompted</strong></p></figcaption></figure>

🎉 Congratulations! You should now have received the native's chain currency in your wallet!

<figure><img src="/files/BoEz7wmKqDMxlhHz33Ri" alt=""><figcaption></figcaption></figure>

👉 You can review your Open Loans at any time by proceeding to “Open Loans” or continue directly to <https://app.pine.loans/borrowing/open>

<figure><img src="/files/78kXgCujrWuOOlHpaUGa" alt=""><figcaption></figcaption></figure>

👉 You can review and Repay your Open Loan at any time:

<figure><img src="/files/Z42UWCWCqvEF0oLvmzeD" alt=""><figcaption></figcaption></figure>

👉 You can also choose to extend your loan by selecting “Extend Loan”.

<figure><img src="/files/e3u1gDEVGAodJJ6Cqqha" alt=""><figcaption></figcaption></figure>

👉 Here you will be presented with several options. Similar to selecting a pool when initially opening a loan, you can also browse multiple pools here and select one with conditions according to your criteria.

<figure><img src="/files/8C6Doj3GEBjrmVcpiPuI" alt=""><figcaption></figcaption></figure>

👉 Now select the New Borrow Amount and select Extend to execute.

<figure><img src="/files/d8IiOs4CgykJVKLut5FU" alt=""><figcaption></figcaption></figure>

✅ And that’s it! Once you pay off your loan, the NFT will be under your full ownership again.

❓ Be sure to check out our [**Borrowing FAQs**](/faqs/borrowing) page for more information or if you have any questions regarding our Borrowing feature.


# Lending (NFTs)

🌲 Pine Protocol: Creating a new Lenders Pool for NFTs

<figure><img src="/files/z6WOYK1NvQ2XiW0HVBll" alt=""><figcaption><p><strong>If you have questions, trouble, suggestions etc. at any time, then we’ll be directly available in Discord to help you out:</strong> <a href="www.discord.gg/pineprotocol"><strong>discord.gg/pineprotocol</strong></a></p></figcaption></figure>

**⚠️ Always ensure that you’re on the right domains ⚠️**\
\- pine.loans\
\- app.pine.loans

*We advise to bookmark the URLs to prevent going into possible phishing websites that are using similar names* 📗

&#x20;

**🤿 Creating a Lending Pool**

*The total pool liquidity is always equal to the WETH / WMATIC amount in your wallet*

&#x20;\
👉 Head over to <https://pine.loans/> and select “Launch App”

<figure><img src="/files/4rjcB5KFEp4rBJnJW92p" alt=""><figcaption><p><em><strong>or proceed directly to the app by following this URL:</strong></em> <a href="https://app.pine.loans/pools/"><em><strong>https://app.pine.loans/pools/</strong></em></a></p></figcaption></figure>

👉 Head over to “Lending” and select “Get Started”

<figure><img src="/files/fysEEuPkLpWdnxhpuMfn" alt=""><figcaption></figcaption></figure>

🦊 You will be prompted to connect your MetaMask or Wallet:

<figure><img src="/files/2LjuUST3UUMWWsl6Tg3l" alt=""><figcaption></figcaption></figure>

✅ Read through and “Accept” the Pine Terms of Service in order to continue.

<figure><img src="/files/CmzHmmkpzilUYqhiHutL" alt=""><figcaption></figcaption></figure>

👉 Proceed by selecting “Create your first pool” or “+ New pool”

<figure><img src="/files/FQxJPSi13L1gYf2iK4Bp" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/lAhnrFU3YyXOh44u9d29" alt=""><figcaption></figcaption></figure>

👀 You will now be presented with the following page:

<figure><img src="/files/1HIqdqShLOqqvonWYZje" alt=""><figcaption></figcaption></figure>

👉 We start off by selecting NFT collections.

<figure><img src="/files/rzkFAuAB1jLXLe0Cb4xg" alt=""><figcaption></figcaption></figure>

1️⃣ First we will need to select the Collection for which users can use their NFTs to borrow liquidity against.

<figure><img src="/files/2tlTUo2IgOgHHhP8EcIJ" alt=""><figcaption></figcaption></figure>

🔍 Select a verified NFT Collection from the list or search for one manually that is supported on OpenSea, LooksRare or x2y2.

In this example we will select Bored Ape Yacht Club:

<figure><img src="/files/qyKno8MYhMKjAyyPcuK1" alt=""><figcaption></figcaption></figure>

✅ You will now see the selected NFT Collection displayed&#x20;

<figure><img src="/files/A6wpukZDagF83ruG9y0k" alt=""><figcaption><p><strong>⚠️ </strong><em><strong>(ensure the contract address matches the NFT Collection on OpenSea/LooksRare)</strong></em><strong> ⚠️</strong></p></figcaption></figure>

2️⃣ Now we will select the Tenor length.

This will decide how long users have to repay their loan.

<figure><img src="/files/weOJ6h1SsOzMh95XbOHW" alt=""><figcaption></figcaption></figure>

3️⃣ Enter the desired Collateral Factor. This will decide the Loan-to-Value (LTV).

For example a Collateral Factor of 50% where the floor price of the collection is 2 ETH will allow users to borrow a maximum of 1 ETH.

<figure><img src="/files/bJnLd8mIbQW6jdZuat3Z" alt=""><figcaption><p>This can be changed after Pool Creation any time as well</p></figcaption></figure>

4️⃣ Enter the desired Interest Rate.

The Interest Rate decides how much you will earn on the amount that users borrow.

<figure><img src="/files/9nRZ0y8wxURa8qf6WNru" alt=""><figcaption><p>This can be changed after Pool Creation any time as well</p></figcaption></figure>

5️⃣ Set Exposure Limit

And finally the Exposure Limit which is optional. Leaving it to 0 will set it to default (limitless). This amount decides how much WETH, WMATIC, etc. can be used to borrow from your wallet.

For example if you have 10 WETH in your wallet, but you only want to expose a maximum of 5 WETH for all the loans combined, then you can choose to set the Exposure Limit to 5.

<figure><img src="/files/e936qSiVRzLx6E6esF18" alt=""><figcaption><p>This can be changed after Pool Creation any time as well</p></figcaption></figure>

👉 Now that all details have been filled in, we can proceed by officially creating the pool

<figure><img src="/files/nUFLwm06nqC8D9a1k6GS" alt=""><figcaption><p>🦊 Approve the transaction and wait for the magic to happen</p></figcaption></figure>

✅ You should now see your brand new pool listed under “Unpublished”\
*1. It’s in an unpublished state because at this point the Smart Contract for the new pool has not been approved yet (only the terms have been determined).*\
*2. As long as it’s unpublished, the pool remains inactive and no loans can be taken out.*

<figure><img src="/files/KV33GLyvGjbD54nUwlno" alt=""><figcaption></figcaption></figure>

👉 Now we’ll proceed and Publish the Pool by selecting the Collection which will bring up the following pop-up:

<figure><img src="/files/Y626QfZg82fCDZNTjm25" alt=""><figcaption></figcaption></figure>

🦊 Proceed by selecting “Approve WETH” and confirming the transaction.

<figure><img src="/files/mQ1Z1A7UAn3I3D6YqCC4" alt=""><figcaption></figcaption></figure>

🦊 Due to a new MetaMask update, users are now asked to input their Spending Cap. In order for your pool to be correctly published you will need to select the "Use default" option as seen here:

<figure><img src="/files/74zePZweGRrYLHJvdGJj" alt=""><figcaption></figcaption></figure>

✅ Finally we can officially publish our pool by selecting "Publish"

<figure><img src="/files/ZnoUJgLnXEGNW4SgncR8" alt=""><figcaption></figcaption></figure>

🎉 Congratulations! You should now see your pool active and ready to be used under the Active Pools list: <https://app.pine.loans/pools/>

🤝 You can view your Open Loans that borrowers took out under Open Loans: [https://app.pine.loans/lending/loans](https://experimental.pine.loans/lending/loans)

**Multi Loan Options 🤿 🤿 🤿**\
With the introduction of our Multi Loan Options support, any lender is now able to create multiple loan options for any collection and even able to update existing ones.

👉 Let’s proceed to any current (un)published pool

<figure><img src="/files/zi4DdtL9RE2tS12EXMgZ" alt=""><figcaption></figcaption></figure>

✅ Once inside you should now be presented with the loan option initially created during the pool setup:

<figure><img src="/files/dpduO6rZ12tDh8arvg1k" alt=""><figcaption></figcaption></figure>

👉 Let’s go ahead and create a new Loan Option

![](/files/2cmkWISZ39W0qpEpXUGp)

👀 You will be presented with the same term options as with creating a new pool:

<figure><img src="/files/apCU4EDPHvVzKVeCVFKu" alt=""><figcaption></figcaption></figure>

👉 Enter the desired options for the Tenor, Collateral Factor and Interest Rate and let’s proceed to creating the new loan option:

<figure><img src="/files/9oZhvH69EYXbXVW0S5aj" alt=""><figcaption><p>🦊 Approve the transaction and wait for the magic to happen</p></figcaption></figure>

✅ You will now see a 2nd loan option being available which borrowers can choose from at any time:

<figure><img src="/files/y2wkqYdBuN2Elh6d20UV" alt=""><figcaption></figcaption></figure>

✅ Want to change, add or remove a loan option? Simply head over the desired loan option and change the Collateral Factor & Interest Rate and select Update or Delete.

<figure><img src="/files/1fvhxMBtH9ncdm4dDXbZ" alt=""><figcaption><p>🦊 Approve the transaction and wait for the magic to happen</p></figcaption></figure>

✅ Borrowers who want to open a new loan or extend their current one will now be able to select from different pools and pick the most favorable conditions according to their needs

<figure><img src="/files/fXcuKcOpevY3C4vKjWjJ" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/GUBK2yoc0wkpdWSGOQhR" alt=""><figcaption></figcaption></figure>

👀 When users take out a loan using any of your Published Pools, you will be able to view this loan and its status under the Open Loans page:

<figure><img src="/files/d6Gl00Rn0TS7aVA4t7rO" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/kBdpH6ocSa7pa8mFzlub" alt=""><figcaption></figcaption></figure>

👀 When borrowers are unable to Repay or Extend their loan in time, then this will open up the possibility to liquidate the NFT that was used as collateral under the loan using your lending pool.\
\
Under the same Open Loans keep an eye out for the Expiry date of any loan:&#x20;

<figure><img src="/files/gmxGBCsIqL5uipjceSsE" alt=""><figcaption></figcaption></figure>

👀 Once a loan has expired, it will be marked with a "Liquidatable" label, which indicates that the borrowers did not manage to repay or extend their loan in time.

<figure><img src="/files/ns3nK2pVad4QS5TSHVS2" alt=""><figcaption></figcaption></figure>

👀 To obtain possession of the NFT, simply select it which will open the following pop-up:

<figure><img src="/files/FN1Zi7HKsxucicBBo6Mp" alt=""><figcaption></figcaption></figure>

🦊 Select the Liquidate button and approve the transaction.

✅ The liquidated NFT has now been transferred to your wallet and the Open Loan will no longer be visible. This process may take up to 5 minutes to correctly reflect on your page.

<figure><img src="/files/ppkgwZ68kA86iWP78bb8" alt=""><figcaption></figcaption></figure>

😇 Changed your mind about the Exposure Limit you set when creating the pool? Good news! Our new Edit Exposure feature allows you to control your Exposure Limit at any time!

The Exposure Limit determines the max amount of liquidity you want to expose from your wallet. For example if your wallet contains 8 ETH, but you only want to expose 4 ETH at any time then this is the perfect solution.

So how does this work?\
\
👉 Let's head over to any specific pool under your Lending page:&#x20;

<figure><img src="/files/h3Kt3wPKgwReP0j7EbWZ" alt=""><figcaption></figcaption></figure>

\
👉 Select the new Edit Exposure button:

<figure><img src="/files/lZudM4sTRGx393M2NgQZ" alt=""><figcaption></figcaption></figure>

😎 Let's update the exposure! By default it will load the Exposure Limit that was set initially during the pool creation. In this example we are going to update it to 2 ETH:

<figure><img src="/files/QkD0ERiVda10q6proxN3" alt=""><figcaption></figcaption></figure>

✅ Select Save after inputting your new Exposure Limit

🎉 Congratulations! The new Exposure Limit will now be reflected after roughly 5 minutes according to your new set value:

<figure><img src="/files/dexOMngJKSzJcpzTu66p" alt=""><figcaption></figcaption></figure>

❓ Be sure to check out our [**Lending FAQs**](/faqs/lending) page for more information or if you have any questions regarding our Borrowing feature.


# Lending (SFTs)

🌲 Pine Protocol: Creating a new Lenders Pool for SFTs

<figure><img src="/files/z6WOYK1NvQ2XiW0HVBll" alt=""><figcaption><p><strong>If you have questions, trouble, suggestions etc. at any time, then we’ll be directly available in Discord to help you out:</strong> <a href="www.discord.gg/pineprotocol"><strong>discord.gg/pineprotocol</strong></a></p></figcaption></figure>

**⚠️ Always ensure that you’re on the right domains ⚠️**\
\- pine.loans\
\- app.pine.loans

*We advise to bookmark the URLs to prevent going into possible phishing websites that are using similar names* 📗

&#x20;

**🤿 Creating a Lending Pool**

*The total pool liquidity is always equal to the WETH / WMATIC amount in your wallet*

&#x20;\
👉 Head over to <https://pine.loans/> and select “Launch App”

<figure><img src="/files/4rjcB5KFEp4rBJnJW92p" alt=""><figcaption><p><em><strong>or proceed directly to the app by following this URL:</strong></em> <a href="https://app.pine.loans/pools/"><em><strong>https://app.pine.loans/pools/</strong></em></a></p></figcaption></figure>

👉 Head over to “Lending” and select “Get Started”

<figure><img src="/files/fysEEuPkLpWdnxhpuMfn" alt=""><figcaption></figcaption></figure>

🦊 You will be prompted to connect your MetaMask or Wallet:

<figure><img src="/files/2LjuUST3UUMWWsl6Tg3l" alt=""><figcaption></figcaption></figure>

✅ Read through and “Accept” the Pine Terms of Service in order to continue.

<figure><img src="/files/CmzHmmkpzilUYqhiHutL" alt=""><figcaption></figcaption></figure>

👉 Proceed by selecting “Create your first pool” or “+ New pool”

<figure><img src="/files/FQxJPSi13L1gYf2iK4Bp" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/lAhnrFU3YyXOh44u9d29" alt=""><figcaption></figcaption></figure>

👀 You will now be presented with the following page:

<figure><img src="/files/NELy7bOogTOGI2aSXV83" alt=""><figcaption><p>Be sure to selec tthe correct network! </p></figcaption></figure>

👉 We start off by selecting SFT collections.

<figure><img src="/files/oAgAFArVjCSEKVJ2DeoP" alt=""><figcaption></figcaption></figure>

1️⃣ First we will need to select the Fund Type:

<figure><img src="/files/7pPtij2b3ip30EqYClz5" alt=""><figcaption></figcaption></figure>

🔍 Select a verified SFT type from the list or search for one manually by entering its contract address.

In this example we will select a Closed-end fund with contract address ..d04d

<figure><img src="/files/fSnpFYMRpATPQ6XlOkhc" alt=""><figcaption></figcaption></figure>

✅ You will now see the selected NFT Collection displayed&#x20;

<figure><img src="/files/xMys3DTJoAEXh3XruoyV" alt=""><figcaption></figcaption></figure>

2️⃣ Now we will select the Product ID.

To identify the correct Product ID head over to <https://app.solv.finance/earn> and select any of the available Funds. You will see the Product ID in the Overview.&#x20;

Make sure the Contract Address from the Select Fund Type matches the Product ID:

<figure><img src="/files/Y7qguYJmwz6psenGK76C" alt=""><figcaption></figcaption></figure>

&#x20;👉 We will enter the Product ID here:

<figure><img src="/files/b0iacigidVJZmCAzUosR" alt=""><figcaption></figcaption></figure>

3️⃣ Enter the desired Collateral Factor. This will decide the Loan-to-Value (LTV).

For example a Collateral Factor of 50% where the floor price of the collection is 2 ETH will allow users to borrow a maximum of 1 ETH.

<figure><img src="/files/rIXaZe59l0VKgkAppkIf" alt=""><figcaption><p>This can be changed after Pool Creation any time as well</p></figcaption></figure>

&#x20;4️⃣ Now we will select the Tenor length.

This will decide how long users have to repay their loan.

<figure><img src="/files/HbL6EmF7LhQSFzWX4iFc" alt=""><figcaption></figcaption></figure>

5️⃣ Enter the desired Interest Rate.

The Interest Rate decides how much you will earn on the amount that users borrow. This additional amount will be included&#x20;

<figure><img src="/files/dAloWBGy7964QvwBRP04" alt=""><figcaption><p>This can be changed after Pool Creation any time as well</p></figcaption></figure>

6️⃣ Set Exposure Limit

And finally the Exposure Limit which is optional. Leaving it to 0 will set it to default (limitless). This amount decides how much WETH, WMATIC, etc. can be used to borrow from your wallet.

For example if you have 10 WETH in your wallet, but you only want to expose a maximum of 5 WETH for all the loans combined, then you can choose to set the Exposure Limit to 5.

<figure><img src="/files/VQ4bJUZtEZ5anMCyxxWz" alt=""><figcaption><p>This can be changed after Pool Creation any time as well</p></figcaption></figure>

👉 Now that all details have been filled in, we can proceed by officially creating the pool

<figure><img src="/files/nUFLwm06nqC8D9a1k6GS" alt=""><figcaption><p>🦊 Approve the transaction and wait for the magic to happen</p></figcaption></figure>

✅ You should now see your brand new pool listed under “Unpublished”\
*1. It’s in an unpublished state because at this point the Smart Contract for the new pool has not been approved yet (only the terms have been determined).*\
*2. As long as it’s unpublished, the pool remains inactive and no loans can be taken out.*

👉 Now we’ll proceed and Publish the Pool by selecting the Collection which will bring up the following pop-up:

<figure><img src="/files/Y626QfZg82fCDZNTjm25" alt=""><figcaption></figcaption></figure>

🦊 Proceed by selecting “Approve WETH” and confirming the transaction.

<figure><img src="/files/mQ1Z1A7UAn3I3D6YqCC4" alt=""><figcaption></figcaption></figure>

🦊 Due to a new MetaMask update, users are now asked to input their Spending Cap. In order for your pool to be correctly published you will need to select the "Use default" option as seen here:

<figure><img src="/files/74zePZweGRrYLHJvdGJj" alt=""><figcaption></figcaption></figure>

✅ Finally we can officially publish our pool by selecting "Publish"

<figure><img src="/files/ZnoUJgLnXEGNW4SgncR8" alt=""><figcaption></figcaption></figure>

🎉 Congratulations! You should now see your pool active and ready to be used under the Active Pools list: <https://app.pine.loans/pools/>

🤝 You can view your Open Loans that borrowers took out under Open Loans: [https://app.pine.loans/lending/loans](https://experimental.pine.loans/lending/loans)

**Multi Loan Options 🤿 🤿 🤿**\
With the introduction of our Multi Loan Options support, any lender is now able to create multiple loan options for any collection and even able to update existing ones.

👉 Let’s proceed to any current (un)published pool

<figure><img src="/files/zi4DdtL9RE2tS12EXMgZ" alt=""><figcaption></figcaption></figure>

✅ Once inside you should now be presented with the loan option initially created during the pool setup:

<figure><img src="/files/dpduO6rZ12tDh8arvg1k" alt=""><figcaption></figcaption></figure>

👉 Let’s go ahead and create a new Loan Option

![](/files/2cmkWISZ39W0qpEpXUGp)

👀 You will be presented with the same term options as with creating a new pool:

<figure><img src="/files/apCU4EDPHvVzKVeCVFKu" alt=""><figcaption></figcaption></figure>

👉 Enter the desired options for the Tenor, Collateral Factor and Interest Rate and let’s proceed to creating the new loan option:

<figure><img src="/files/9oZhvH69EYXbXVW0S5aj" alt=""><figcaption><p>🦊 Approve the transaction and wait for the magic to happen</p></figcaption></figure>

✅ You will now see a 2nd loan option being available which borrowers can choose from at any time:

<figure><img src="/files/y2wkqYdBuN2Elh6d20UV" alt=""><figcaption></figcaption></figure>

✅ Want to change, add or remove a loan option? Simply head over the desired loan option and change the Collateral Factor & Interest Rate and select Update or Delete.

<figure><img src="/files/1fvhxMBtH9ncdm4dDXbZ" alt=""><figcaption><p>🦊 Approve the transaction and wait for the magic to happen</p></figcaption></figure>

✅ Borrowers who want to open a new loan or extend their current one will now be able to select from different pools and pick the most favorable conditions according to their needs

<figure><img src="/files/fXcuKcOpevY3C4vKjWjJ" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/GUBK2yoc0wkpdWSGOQhR" alt=""><figcaption></figcaption></figure>

👀 When users take out a loan using any of your Published Pools, you will be able to view this loan and its status under the Open Loans page:

<figure><img src="/files/d6Gl00Rn0TS7aVA4t7rO" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/kBdpH6ocSa7pa8mFzlub" alt=""><figcaption></figcaption></figure>

👀 When borrowers are unable to Repay or Extend their loan in time, then this will open up the possibility to liquidate the SFT that was used as collateral under the loan using your lending pool.\
\
Under the same Open Loans keep an eye out for the Expiry date of any loan:&#x20;

<figure><img src="/files/gmxGBCsIqL5uipjceSsE" alt=""><figcaption></figcaption></figure>

👀 Once a loan has expired, it will be marked with a "Liquidatable" label, which indicates that the borrowers did not manage to repay or extend their loan in time.

<figure><img src="/files/ns3nK2pVad4QS5TSHVS2" alt=""><figcaption></figcaption></figure>

👀 To obtain possession of the SFT, simply select the Liquidatable open loan which will open the following pop-up:

<figure><img src="/files/FN1Zi7HKsxucicBBo6Mp" alt=""><figcaption></figcaption></figure>

🦊 Select the Liquidate button and approve the transaction.

✅ The liquidated SFT has now been transferred to your wallet and the Open Loan will no longer be visible. This process may take up to 5 minutes to correctly reflect on your page.

<figure><img src="/files/ppkgwZ68kA86iWP78bb8" alt=""><figcaption></figcaption></figure>

😇 Changed your mind about the Exposure Limit you set when creating the pool? Good news! Our new Edit Exposure feature allows you to control your Exposure Limit at any time!

The Exposure Limit determines the max amount of liquidity you want to expose from your wallet. For example if your wallet contains 8 ETH, but you only want to expose 4 ETH at any time then this is the perfect solution.

So how does this work?\
\
👉 Let's head over to any specific pool under your Lending page:&#x20;

<figure><img src="/files/h3Kt3wPKgwReP0j7EbWZ" alt=""><figcaption></figcaption></figure>

\
👉 Select the new Edit Exposure button:

<figure><img src="/files/lZudM4sTRGx393M2NgQZ" alt=""><figcaption></figcaption></figure>

😎 Let's update the exposure! By default it will load the Exposure Limit that was set initially during the pool creation. In this example we are going to update it to 2 ETH:

<figure><img src="/files/QkD0ERiVda10q6proxN3" alt=""><figcaption></figcaption></figure>

✅ Select Save after inputting your new Exposure Limit

🎉 Congratulations! The new Exposure Limit will now be reflected after roughly 5 minutes according to your new set value:

<figure><img src="/files/dexOMngJKSzJcpzTu66p" alt=""><figcaption></figcaption></figure>

❓ Be sure to check out our [**Lending FAQs**](/faqs/lending) page for more information or if you have any questions regarding our Borrowing feature.


# Pine Now Pay Later

🌲 Pine Protocol: Buy your new NFT through Pine Now Pay Later

<figure><img src="/files/tlR3JAaAQRUcxC7dFD6d" alt=""><figcaption><p><strong>If you have questions, trouble, suggestions etc. at any time, then we’ll be directly available in Discord to help you out:</strong> <a href="www.discord.gg/pineprotocol"><strong>discord.gg/pineprotocol</strong></a></p></figcaption></figure>

**⚠️ Always ensure that you’re on the right domains ⚠️**\
\- pine.loans\
\- app.pine.loans

*We advise to bookmark the URL’s to prevent going into possible phishing websites that are using similar names* 📗

\ <br>

**💵 Low liquidity to buy that NFT? We got you!**

👉 Head over to <https://pine.loans/> and select “Launch App”

<figure><img src="/files/AcQtNi9NHrzkIq6ujTvZ" alt=""><figcaption><p><strong>👉 Or proceed directly to the app by following this link</strong> <a href="https://app.pine.loans/pools/"><strong>https://app.pine.loans/pools/</strong></a></p></figcaption></figure>

👉 Head over to “Pine Now Pay Later”

<figure><img src="/files/NNUYtXMATGssyAg3aUOk" alt=""><figcaption></figcaption></figure>

👀 You will now be presented with this page:

<figure><img src="/files/rTlsihCnx0JvYImT1grx" alt=""><figcaption></figcaption></figure>

👉 Search for any NFT collection that is supported on our [**Active Pools**](https://app.pine.loans/pools) list on either [**OpenSea**](https://opensea.io/) or [**LooksRare**](https://looksrare.org/) and copy the URL of your favorite NFT that is listed for SALE.

<figure><img src="/files/OpaOjTu2fGFKwj097ldS" alt=""><figcaption><p><em><strong>(If the supported NFT is not listed for SALE, the PNPL won’t be able to proceed)</strong></em></p></figcaption></figure>

👉 Paste the URL as follows & select Start to continue:

<figure><img src="/files/yAEFophLGbmK2S6xoZmq" alt=""><figcaption></figcaption></figure>

👀 You should now be presented with the valuation and terms of your NFT:

<figure><img src="/files/6gGkzZJNPAlU5A1gYCB9" alt=""><figcaption></figcaption></figure>

✅ By default the most favorable pool is selected for you to borrow against. However always explore multiple pool options to see if one exists that better meets your criteria:

<figure><img src="/files/VidFmG9fUZffpdeykBrp" alt=""><figcaption></figcaption></figure>

👉 Select the amount you want to borrow to help purchase your NFT

<figure><img src="/files/reOKEY3YsKwyimTtrgNo" alt=""><figcaption></figcaption></figure>

👍 When you want to proceed ensure you approve the collection first if not done so yet

<figure><img src="/files/Ldg24QmtCWEXud0qbH36" alt=""><figcaption><p>🦊 Approve the transaction when prompted</p></figcaption></figure>

👀 You should see a pop-up that your transaction is processing on the blockchain

⏲️ And simply wait for it to be completed<br>

<figure><img src="/files/8adXjfr51bcSh1Id5PGD" alt=""><figcaption></figcaption></figure>

👉 You may now proceed purchasing your NFT by selecting “Buy Now”:

<figure><img src="/files/DEFliOaQNUJxF8IWj0xs" alt=""><figcaption><p><strong>🦊 Approve the transaction and wait for the magic to happen.</strong></p></figcaption></figure>

🎉 Congratulations! Once the loan is repaid the NFT will be transferred to your wallet!

<figure><img src="/files/VJi5Bj05XCj3su27DrcQ" alt=""><figcaption></figcaption></figure>

👉 You can review your Open Loans at any time by proceeding to “Open Loans” or continue directly to <https://app.pine.loans/borrowing/open>

<figure><img src="/files/6PsuH3b4CW2pcrFJJyeo" alt=""><figcaption></figcaption></figure>

👉 You can review and pay off your Open Loan at any time:

<figure><img src="/files/0JdrVtcl4GIOKwni14yl" alt=""><figcaption></figcaption></figure>

👉 You can also choose to extend your loan by selecting “Extend Loan”.

<figure><img src="/files/gIn3kvK60IygFd9tKIla" alt=""><figcaption></figcaption></figure>

👉 Here you will be presented with several options. Similar to selecting a pool when initially opening a loan, you can also browse multiple pools here and select one with conditions according to your criteria.

<figure><img src="/files/ftiT5l9xfqH6jteKDVd5" alt=""><figcaption></figcaption></figure>

👉 Now select the New Borrow Amount and select Extend to execute

<figure><img src="/files/0UBKLJsEtltYSao6iyfP" alt=""><figcaption></figcaption></figure>

✅ And that’s it! Once you pay off your loan, the NFT will be under your full ownership.

❓ Be sure to check out our [**Lending FAQs**](/faqs/lending) page for more information or if you have any questions regarding our Borrowing feature.


# Staking & Burning

$PINE Burning & Staking

<figure><img src="/files/YERDd5hrZPhvvvhnZxgx" alt=""><figcaption><p><strong>If you have questions, trouble, suggestions etc. at any time, then we’ll be directly available in Discord to help you out:</strong> <a href="www.discord.gg/pineprotocol"><strong>discord.gg/pineprotocol</strong></a></p></figcaption></figure>

**⚠️ Always ensure that you’re on the right domains ⚠️**\
\- pine.loans\
\- app.pine.loans

*We advise to bookmark the URLs to prevent going into possible phishing websites that are using similar names* 📗

👉 Head over to <https://pine.loans/> and select “Launch App”

<figure><img src="/files/ukn2DsPsFz9gjRAonMag" alt=""><figcaption></figcaption></figure>

👉 Head over to “$PINE"

<figure><img src="/files/8xtMHZOU1vgcrZSyDhj2" alt=""><figcaption></figcaption></figure>

<img src="/files/dM6sdyTIRotTT3M445Ic" alt="" data-size="line"> Make sure you're connected to the Polygon network before staking or burning your $PINE tokens. Polygon was selected so you can enjoy low-fee transactions 💚

👉 In order to start **staking**, proceed to the Stake/Burn section and select the "Stake" button

<figure><img src="/files/KtFl6cJBRirPc2VsdIYK" alt=""><figcaption></figcaption></figure>

👀 You will be presented with a pop-up where you can select the amount you wish to Stake. Simply select the amount you want to stake and select "Approve"

<figure><img src="/files/6RS31oYwZGcZplfWzwVx" alt=""><figcaption></figcaption></figure>

**🦊** Due to a new MetaMask update, users are now asked to input their Spending Cap. In order to guarantee that staking and burning will always function, be sure to select the "Use default" option as seen here:

<figure><img src="/files/uR2LSvUUeTDaM1HTa69s" alt=""><figcaption><p><strong>🦊 Approve the transaction when prompted</strong></p></figcaption></figure>

👉 We can continue to officially start staking. Select the Stake button and watch the magic unfold!

<figure><img src="/files/yJVVMPxPMRZKEktS28pc" alt=""><figcaption><p><strong>🦊 Approve the transaction when prompted</strong></p></figcaption></figure>

🎉 Congratulations, that's it!\
\
To see how much you can earn by Staking, be sure to check out the current Age under the Ecosystem section of our docs.pine.loans. The longer you stake $PINE, the more your rewards will increase exponentially! 😎

🔥  In order to start **burning** we can follow the same process, except this time we will select the "Burn $PINE" button under the Stake/Burn section:

<figure><img src="/files/l3kBOzom0PAscpoW9hND" alt=""><figcaption></figcaption></figure>

👀 You will be presented with a pop-up where you can select the amount you wish to burn. Simply select the amount you want to burn and select "Approve".

<figure><img src="/files/BE1NvPXckH9blda8xoXu" alt=""><figcaption></figcaption></figure>

\
**🦊** Due to a new MetaMask update, users are now asked to input their Spending Cap. In order to guarantee that staking and burning will always function, be sure to select the "Use default" option as seen here:

<figure><img src="/files/IiwwZiRv0TtKqy1rGsji" alt=""><figcaption></figcaption></figure>

👉 We can continue to officially start burning. Select the Burn button and watch the magic unfold!

<figure><img src="/files/IFUgVaPk0y0kXgjFbzpF" alt=""><figcaption></figcaption></figure>

🎉 Congratulations! That's it!

❓ Be sure to check out our [**$PINE FAQs**](/faqs/usdpine-governance) page for more information or if you have any questions regarding our Borrowing feature.


# Governance Voting

You have the power! 🌲

One of the most important aspects of a DAO is collective decision making. We’ll be participating in exactly that by voting on a proposal with Snapshot.

## What is needed? <a href="#what-do-i-need" id="what-do-i-need"></a>

In order to vote with Snapshot, you will need the following:

* A wallet, such as [**MetaMask**](https://metamask.io/)
* Governance Shares of Pine (vePINE / sbPINE)

## What is Snapshot? <a href="#voting--snapshot" id="voting--snapshot"></a>

Snapshot is a decentralized, gasless voting system and removes the friction from the voting process which makes it as easy as posting a Twitter poll.

Users participating in PINE governance (Pine Stakers & BUrners) are eligible to create and vote on proposals.

## Let's start voting!

First let's head out to <https://snapshot.org/#/pineprotocol.eth> and connect using the "Connect wallet" button located on the top-right of the page.

<figure><img src="/files/ILnVpqNphzZUPqXz8VpK" alt=""><figcaption></figcaption></figure>

Next up we will need to join Pine Protocol. Select the "Join" button on the left side of the page.

<figure><img src="/files/lQsm7L478nlpghgmbWDh" alt=""><figcaption><p>You will now see "Joined" after successfully completing this step.</p></figcaption></figure>

Go through and select any open proposals in the Proposals tab. Carefully read through the selected proposal after which we'll start to cast our vote.\
\
Select any of the available options that you want to cast your vote on. Mostly these will be in the form of "Yes", "No" or "Abstain".

<figure><img src="/files/RaP1qWWqYpSuwlTn7Y0q" alt=""><figcaption></figcaption></figure>

Confirm your vote by signing it with your wallet. Remember, signing will not cost any gas fees 💖

## Success!

That's it! You have now officially participated in Pine DAO governance!

<img src="/files/5i5kCFKkVrGCvjFhi8Uv" alt="" data-size="original">

❓ Be sure to check out our [**$PINE FAQs**](/faqs/usdpine-governance) page for more information or if you have any questions regarding our Borrowing feature.


# General

Frequently Asked Questions (FAQs)

**What can a user do on Pine?**\
The Pine protocol serves two groups of users: lenders and borrowers. Lenders set up and fund their own lending pools for different NFT collections and set their own terms for loan offers. Borrowers can choose from these offers and borrow digital currencies against them using their NFT assets as collateral. Using the protocol is permissionless on both ends.\
\
As true believers in blockchain technology, we see a future where payment will be done in digital currencies and asset ownership will be represented by non fungible digital tokens (“NFT”). Our solution, the Pine Protocol, will be the smart contract infrastructure that will allow asset-back financing to be conducted more efficiently and transparently on the blockchains.

**How is Pine different from other NFT Finance protocols?**\
Check out the following Medium article that details the most important changes in Pine vs. other NFT Finance protocols: [https://medium.com/pine-protocol/pine-vs-others](https://medium.com/pine-protocol/pine-vs-others-210dbee2d700)

**What experience does the team have?**\
The Pine team is composed of contributors with extensive experience and expertise in blockchain technology, digital assets exchange, quantitative trading, software development, e-commerce and traditional banking.

To find out more about the team check out the [**Team**](/pine-protocol/team) page.

**Where can I find all the official links?**\
Please refer to our <https://linktr.ee/pineprotocol>\
\
**How secure is the Pine Protocol?**\
The smart contracts of the Pine Protocol have been audited by Quantstamp and Nassec, but most importantly our investors also performed their in-house audits to ensure they are investing into a secure project.\
\
**Which chains are currently supported on Pine?**\
Pine currently supports Ethereum & Polygon and are rapidly expanding to more chains, stay tuned!\
\
**How can I connect with the team for questions or support?**\
The best way would be to visit our Discord and opening a support ticket: <http://discord.gg/pineprotocol>


# Borrowing

Frequently Asked Questions (FAQs)

**Does my loan go into default when the loan LTV exceeds the liquidation LTV?**\
No, under normal circumstances, the loan will only go into default if the borrower does not pay back or extend/roll-over the loan before the end of the loan term.\
\
**Taking out a loan using PNPL, is the liquidity coming from Pine Protocol or from an available pool that is setup?**\
The liquidity always comes from individual lenders in which they set up an active pool for, meaning even you could connect your wallet today and set up your own pool within 3 minutes for any NFT Collection listed on OpenSea or LooksRare! See the full list of pools here: <https://app.pine.loans/pools>\
\
**What happens when a user pays back his/her loan obligation?**\
Borrower can pay back any portion of the loan obligation any time, which includes the loan amount and any interest accrued. When the full loan obligation amount has been repaid, the borrower regains full ownership and access to the NFT collateral in the Pine Wallet.

**What happens to airdrops on my NFT while it's open under a loan?** \
Borrowers are eligible to receive their airdrop once they repay the loan! Updates are planned to make this more clear for users on how to claim.\
\
In the meantime if you notice you have an airdrop be sure to open a support ticket in our Discord.gg/PineProtocol

**What happens when a user DOES NOT pay back his/her loan obligation?**\
The loan obligation goes into default when the borrower fails to repay the loan, according to the terms of the loan or when the LTV exceeds the liquidation LTV. In this case, the lender gains full access to the NFT collateral in the Pine Wallet.<br>

**What is the Loan-to-Value (LTV) ratio on Pine?**\
The Loan-to-Value ratio (LTV) will vary depending on the collection and terms set by the lender.\
For safety considerations, Pine’s LTV ratios are set conservatively in the 30-50% range.

**How does a liquidation happen?**\
1\. Liquidation occurs when the borrower fails to Repay or Extend their loan within the accepted Tenor agreement as seen on the Repay Before date:\
\
2\. In this case the Lender will be granted the possibility to take possession of the NFT by withdrawing it from the loan smart contract.\
\
**How is the valuation calculated?**\
The value of NFT is calculated using min(7-day average transaction price, collection floor price) obtained from OpenSea via its API.

**Are there any fees incurred with Pine Loans?**\
Yes there is a small fee incurred, often negligible. Check out [**Protocol Fee**](/pine-protocol/protocol-fee) for all the details.\
\
**What about gas fees?**\
Gas fees are expensive on Ethereum and there is not much we can do about that until further upgrades to the network. Luckily, we have implemented certain gas saving measures so that part of the gas fees will be refunded to you when you repay the loan.\
\
**What currencies does Pine support?**\
Users are able to take out loans in ETH (Ethereum) and MATIC (Polygon). Other currencies will be supported in the future soon!\
\
**Can I borrow if my pledged collateral is currently listed on a marketplace, such as OpenSea or LooksRare or x2y2?**\
Yes, you can still borrow on Pine even if your NFT is listed on OpenSea or LooksRare.

**How is the loan amount calculated? Is it risk adjusted?**\
Max loan amount = valuation \* LTV\
\- For valuation, we take floor prices from OpenSea and LooksRare and add some smoothing to make the price even more conservative\
\- LTV is set by the lender, we typically see 30-50%

<figure><img src="/files/hWm4nObmRwSCXAcSoHzN" alt=""><figcaption></figcaption></figure>

**How do I calculate how much Interest I have to pay?**\
The Interest Rate is based on the Actual/360 date count convention as indicated on the [**Loan Parameters**](/pine-protocol/loan-parameters) page.\
\
Let's take an example taking out a loan for 5 ETH on a pool with 10% Interest Rate. The Tenor (final repay date) is less relevant as you can repay at any time during the loan and the interest rate is only calculated until you actually repay or extend the loan.\
\
To calculate the daily accumulated interest that needs to be paid we are going to divide the 10% of 5 ETH (= 0.5 ETH) divided by 360 days (0.5 / 360) = 0,00139.\
\
This means for every day that the loan is open, roughly **0,00139** ETH will be calculated on the repay date or extension of the loan.

**What are the benefits of repaying early or repaying early partially?**\
Lower interest cost, however keep in mind that our new fee structure will charge an early repayment fee. See all information here: <https://docs.pine.loans/pine-protocol/protocol-fee>

**After repaying/borrowing, my NFTs are not moved to the other page (NFTs/Open Loans). Why?**\
We are using Moralis <https://moralis.io/> to index your NFTs, this may take a few minutes. Refresh the page after 5 minutes to see the actual status.


# Lending

Frequently Asked Questions (FAQs)

## LENDING POOL

**There are many duplicate collections, how can I open the correct one?**\
The best way to search for and open the correct collection as a lender is by using the contract address. You can find these on marketplaces such as OpenSea and checking if they have the "verified" blue check mark.

**How to mitigate risk as Lender for volatile NFT Projects?**\
You can set a shortened loan duration of 1 or 3 days if you think the current conditions are volatile and set a lower collateral percentage, meaning they can borrow much less than the usual 40% of LTV. We also plan to support additional features that will further mitigate risks as a Lender, for example by being able to recall a loan if the LTV drops below a certain threshold %. \
\
**As a Lender, how much liquidity should I typically provide?**\
You would need to look at the floor price, let’s say it’s currently 2 ETH. Take the LTV of around 50% which would be 1 ETH for that project. So a good start would be around 10 ETH’s which would allow around 10 loans (10 loans x 1 ETH = 10 ETH in the Lending Pool).

**What does Exposure Limit mean?**\
The Exposure Limit refers to how much (for example WETH for Ethereum) you want to expose out of your wallet at any given time.

For example, if your wallet contains 20 WETH, but you don't want to expose this entire amount for borrowers (because you might be using the wallet for other purposes), then putting an Exposure Limit is the ideal solution. If you set the exposure to 10 WETH then no matter how many borrowers take out a loan on your pool, they will never be able to take out more than 10 WETH at any given time.


# SFTs

What are SFTs?

SFT stands for "Semi-Fungible Token." To understand what this is, we first need to understand two concepts:

1. **Fungible**: Fungibility refers to items that are interchangeable. The classic example is money. One $10 bill is the same as any other $10 bill, so they're interchangeable or "fungible."
2. **Non-Fungible**: Non-fungibility refers to unique items that aren't interchangeable. Think of rare collectible cards. Each card has a distinct value and features, so they're not interchangeable or "non-fungible."

Now, where does the "Semi-Fungible" part come in?

**Semi-Fungible Token (SFT)**: An SFT combines the features of both fungible and non-fungible items. This means that within the SFT standard, there are items that are interchangeable (like the $10 bills) and there are items that are distinct (like the collectible cards).

According to the ERC-3525 documentation, the standard allows for both fungible and non-fungible tokens to be represented within a single smart contract. This can be helpful for projects that want to represent both types of assets without deploying multiple contracts.

To put it in a real-world context, imagine a concert ticketing system. General admission tickets are interchangeable (or fungible), but VIP tickets with specific seat numbers are unique (or non-fungible). An SFT could represent both types of tickets in one system.

In summary, an SFT according to the ERC-3525 standard allows for the representation of both fungible and non-fungible tokens in a single contract, giving developers more flexibility in how they create and manage digital assets on the blockchain.

To learn more check out: <https://docs.solv.finance/solv-documentation/getting-started/overview>

**Interesting in obtaining SFTs?**\
Check out [https://v2.solv.finance/marketplace/basic-sft](https://v2.solv.finance/marketplace/basic-sft?network=polygon)


# Pine Now Pay Later

Frequently Asked Questions (FAQs)

**PINE NOW PAY LATER**

**What is Pine Now, Pay Later (PNPL)?**\
Pine Now, Pay Later is Pine’s innovative mortgage-like borrowing feature that enables users to buy an NFT with leverage using the NFT itself as collateral for the purchase. Think of it as a mortgage for a home. Once you fully repay the outstanding loan, you will have full ownership of the NFT.\
\
Be sure to check out the [**Pine Now Pay Later**](/pine-guides/pine-now-pay-later) guide for more information.

**Which collections are supported?**\
Any collection that is currently listed on <https://app.pine.loans/> is supported for PNPL!\
\
Don't see the collection? Be sure to visit our Discord.gg/PineProtocol and drop your suggestion!

**How are the terms different from normal borrowing?**\
There is no difference.


# $PINE (Governance)

Frequently Asked Questions (FAQs)

**What was the Seed and TGE price of $PINE?**\
The Seed price and TGE were both $0.20 per $PINE.\
\
For more detailed information and vesting terms, be sure to check out the [**Pine Token**](/ecosystem/pine-token) page.

**What is the  $PINE contract address?**

* ERC20: <https://etherscan.io/token/0x569424c5EE13884A193773fDC5d1c5f79C443a51>
* Polygon: <https://polygonscan.com/token/0x612D833c0c7A54cdfBe9a4328B6d658020563Ec0>

**What is $PINE, vePINE and sbPINE?**\
There are 3 classes of the PINE token, namely PINE, vePINE, and sbPINE with the latter 2 being part of our staking and burning system. Check out the [**Pine Token**](/ecosystem/pine-token) page for detailed information and all benefits of holding them.

**Can I stake $PINE?**\
Definitely! Proceed to the following page <https://app.pine.loans/governance> and connect your wallet to start staking. Check out the [**Staking Guide**](/pine-guides/staking-and-burning) for more information.

**How much can I earn staking and burning $PINE?**\
The current APY can be viewed and constantly updated on the following page: <https://app.pine.loans/governance>\
\
For more information and additional benefits be sure to check out the [**Pine Token**](/ecosystem/pine-token) page.

**Why was Polygon selected to Stake and Burn $PINE tokens?**\
To prevent high gas fees and support faster transactions, we selected Polygon for all staking and burning activities.

## **Governance**

**How can I participate in the PineDAO voting?**\
To participate in proposals or even create your own one! Simply head over to <https://snapshot.org/#/pineprotocol.eth> or check out the guide here: [**Governance Voting**](/pine-guides/governance-voting)


# Troubleshoot

Frequently Asked Questions (FAQs)

**Why can't I Publish my lending pool?**\
Due to a new MetaMask update, users are now asked to input their Spending Cap. In order for your pool to be correctly published you will need to select the "Use default" option as seen here:

<figure><img src="/files/GIRgxtdKioZqKsw1lqNv" alt=""><figcaption><p>Feel free to open a support ticket on Discord.gg/PineProtocol for additional help</p></figcaption></figure>

**Why can't I Approve, Stake or Burn my $PINE tokens?**\
Due to a new MetaMask update, users are now asked to input their Spending Cap. In order to guarantee that staking and burning will always function, be sure to select the "Use default" option as seen here:

<figure><img src="/files/zdES7aKWBQbnrntcvqQq" alt=""><figcaption><p>Feel free to open a support ticket on Discord.gg/PineProtocol for additional help</p></figcaption></figure>

**I'm unable to Withdraw my rewards, why?**\
Rewards are available to be withdrawed 24h at the end of each Epoch, check out the exact dates in the following [**Epoch Dates**](/ecosystem/age-1) page.

**My Estimated Accrued Rewards is no longer visible, how come?**\
Every week there will be a 1 hour snapshot from the current Epoch ending and the start of a new Epoch causing the rewards to display as 0 during this short window.\
\
If you continue to not see any rewards after 1 hour, you can always open a support ticket in our Discord.gg/PineProtocol.

**I'm unable to find the collection during Pool Creation!**\
If you're unable to find the contract by its name, be sure to enter the contract address of the official collection. This also guarantees that you will have the correct one as there are many duplicates on OpenSea.

**I'm unable to Extend my loan!**\
Extend will be unavailable if there are no more pools available during this moment.\
\
If you do see pools available, but you are facing other issues with extending your loan, then you can always open a support ticket in our Discord.gg/PineProtocol.

**I'm unable to Repay my loan!**\
If you have sufficient balance and repaying the loan is not possible due to any error, then open a support ticket in our Discord.gg/PineProtocol as soon as possible so we can look into it.

**I'm trying to Extend my loan, but I'm also required to pay a higher amount?**\
It's highly likely that the current lending pool has lowered the max amount (Collateral Factor) you can borrow for your NFT which will require you to Repay the difference before you can proceed to extend. In this case you can try to change pools with a higher borrow amount.\
\
If you're uncertain about your loan, then you can always open a support ticket in our Discord.gg/PineProtocol

**Temporary error publishing pool, please try again later.**\
If you published the pool and you receive this error, then simply wait a few minutes and refresh the page which will now provide the correct status of your pool.\
\
If the error still continues after a few minutes, then you can always open a support ticket in our Discord.gg/PineProtocol


# Resources

Official Pine resource links 🔗

Here you can find all the official links by Pine. Always ensure that you’re on the right domains. We advise to bookmark any URLs to prevent going into possible phishing websites that are using similar names 📗&#x20;

**Pine Protocol 🌲**

* Pine App: <https://app.pine.loans/>
* Borrow: <https://app.pine.loans/borrowing>
* Lending: <https://app.pine.loans/lending>
* $PINE: <https://app.pine.loans/governance>

**Social Media 📱**

* Discord: [https://discord.gg/PineProtocol](https://discord.gg/pineprotocol)
* Twitter:  <https://twitter.com/PineProtocol>
* Telegram: <https://t.me/pineprotocolnews>
* Medium: <https://medium.com/@PineLoans>
* YouTube: <https://www.youtube.com/@pineprotocol>
* Reddit: <https://www.reddit.com/r/PineProtocol/>

Or check out our Linktr.ee: <https://linktr.ee/pineprotocol>

**Technical Resources** 🧑‍💻

* Github: [https://github.com/pinedefi](https://github.com/pinedefi?view_as=public)
* API: <https://www.postman.com/pinedefi/workspace/pine-loans-platform-apis/overview>
* Dune Analytics: <https://dune.com/ahkek/pine-nft-lending-dashboard>

**Other ⛓️**

* Terms of Service: <https://pine.loans/terms>
* Privacy: <https://pine.loans/privacy>


# Open Positions

Got the talent?

Does the mere thought of working with a decentralized and versatile team in the web3 space make your heart race? Then you might be in the right place!

If no immediate positions are listed, you can always send your open application along with your credentials (e.g. resume, portfolio, reference, social media handles, etc.) to [wagmi@pine.loans.](mailto:wagmi@pine.loans)