Singular: A New Model of NFT Lending Utilizing Dynamic Risk-Interest Rate Matching Technology

Singular is an innovative NFT lending platform that employs a dynamic risk-interest rate matching protocol. The platform allows users to borrow liquidity from the protocol pool using NFTs as collateral or to provide liquidity to the protocol pool to earn interest. Singular aims to provide a more efficient, flexible, and fair liquidity solution for NFT assets, supporting various types of NFTs including PFP, artworks, games, and RWAs.

Core Technology

The core of Singular is a dynamic risk-interest rate matching protocol, which achieves risk and return matching through a two-layer design:

1. Asset Pool Layer: Aggregates NFTs with the same risk, such as a series of NFTs.
2. Liquidity Range Layer: Liquidity providers can choose liquidity ranges based on their risk preferences. The higher the LTV, the higher the risk and the corresponding Interest Rate.

When borrowing, the agreement automatically matches the optimal funding combination. The lower the borrowing amount, the lower the risk and Interest Rate. The simplex dual method algorithm is used for linear programming to ensure that the interest rate is minimized while meeting the funding requirements.

Team and Collaboration

The Singular team is composed of professionals from well-known crypto projects and institutions, with rich experience in DeFi and NFT development and operations. They have currently partnered with several well-known NFT projects, including DigiDaigku Chinese and Weirdo Ghost Gang, which will provide Singular with high-quality NFT assets and user traffic.

Community Participation

Singular has an active community on major social media platforms. The team regularly publishes project updates, interacts with community members, and hosts various events to engage users.

Security

Some security companies have conducted security audits on Singular. The platform has implemented a series of risk control measures, including setting reasonable LTV ranges, limiting loan amounts and terms, real-time monitoring of NFT prices and liquidity, as well as providing early warning and liquidation mechanisms.

Business Model

Potential sources of income for Singular include:

1. Lending Transaction Fee
2. The issuance platform token RMRK is used for protocol governance and incentives.
3. Integrate LSD protocols to earn stable returns using unborrowed funds.
4. Supports multiple types of NFT, covering a wide range of market demands.
5. Use dynamic risk-interest rate matching model to improve capital utilization efficiency and return rate

Competitive Advantage

Compared to other NFT lending platforms, Singular's advantages are:

1. Support for multiple types of NFTs as collateral
2. Allow liquidity providers to choose liquidity ranges based on their risk preferences.
3. Automatically match the optimal capital combination to achieve low risk and low Interest Rate.
4. Integrate LSD protocols to increase the yield of unborrowed funds

Risk Assessment

The main risks faced by Singular include:

1. NFT price volatility risk: It may trigger the liquidation mechanism.
2. NFT liquidity risk: may affect asset realization and loan recovery.
3. NFT security risks: Affected by blockchain networks and smart contracts.

Although Singular has introduced innovative technology in the NFT lending space, users still need to carefully assess the associated risks when participating.