Lending (SFTs)
🌲 Pine Protocol: Creating a new Lenders Pool for SFTs
⚠️ 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 📗
🤿 Creating a Lending Pool
The total pool liquidity is always equal to the WETH / WMATIC amount in your wallet
👉 Head over to https://pine.loans/ and select “Launch App”
👉 Head over to “Lending” and select “Get Started”
🦊 You will be prompted to connect your MetaMask or Wallet:
✅ Read through and “Accept” the Pine Terms of Service in order to continue.
👉 Proceed by selecting “Create your first pool” or “+ New pool”
👀 You will now be presented with the following page:
👉 We start off by selecting SFT collections.
1️⃣ First we will need to select the Fund Type:
🔍 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
✅ You will now see the selected NFT Collection displayed
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.
Make sure the Contract Address from the Select Fund Type matches the Product ID:
👉 We will enter the Product ID here:
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.
4️⃣ Now we will select the Tenor length.
This will decide how long users have to repay their loan.
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
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.
👉 Now that all details have been filled in, we can proceed by officially creating the pool
✅ You should now see your brand new pool listed under “Unpublished” 1. It’s in an unpublished state because at this point the Smart Contract for the new pool has not been approved yet (only the terms have been determined). 2.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:
🦊 Proceed by selecting “Approve WETH” and confirming the transaction.
🦊 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:
✅ Finally we can officially publish our pool by selecting "Publish"
🎉 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
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
✅ Once inside you should now be presented with the loan option initially created during the pool setup:
👉 Let’s go ahead and create a new Loan Option
👀 You will be presented with the same term options as with creating a new pool:
👉 Enter the desired options for the Tenor, Collateral Factor and Interest Rate and let’s proceed to creating the new loan option:
✅ You will now see a 2nd loan option being available which borrowers can choose from at any time:
✅ 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.
✅ 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
👀 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:
👀 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:
👀 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.
👀 To obtain possession of the SFT, simply select the Liquidatable open loan which will open the following pop-up:
🦊 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.
😇 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:
👉 Select the new Edit Exposure button:
😎 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:
✅ 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:
❓ Be sure to check out our Lending FAQs page for more information or if you have any questions regarding our Borrowing feature.
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