Lending Pool

The Vinci lending protocol allows borrowers use NFT assets as collateral, however the prices of NFT assets are more volatile than other currencies, which would bring more risk. To minimize the risk, the Vinci lending pool uses isolated market framework.

Unlike traditional lending markets where high-risk assets can introduce risk to the entire protocol, in Vinci, each market is entirely separate, meaning the risk of NFT assets within one lending market has no effect over the risk of another lending market.

In the Vinci lending protocol, each lending market corresponds to a lending pool. Each pool allows one NFT collection as collateral and multiple tokens as loan assets. The loan assets in a pool may have different interest rates from that of loan assets in other pools due to the different risks of NFT collections.

One of the benefits of this design is the lenders can choose lend their funds to a specific NFT collateral collection, allowing them to manage risks themselves.

In addition, the borrowers' health factors in different pools are also calculated separately, which means if one collateral NFT's floor price dropped significantly, NFT collateral in other pools would not be liquidated.