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How does Levvy work?

With Levvy, NFT and Token holders have the opportunity to unlock liquidity without the need to sell their assets.
By utilizing their NFTs or Fungible Tokens as collateral, users can instantly take loans based on the value of their assets, enabling them to free up capital for various purposes while taking into consideration the interest rates associated with the borrowing process.
Please note that loans are not automatically foreclosed. Lenders have the option to manually initiate the foreclosure process. As a result, there may be a limited window of time available for borrowers to address and resolve any potential issues before the loan is foreclosed.

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Interest Rate

The interest rate represents the amount that the lender will receive and the borrower will pay for the loan within a designated two-week period, commonly referred to as the lending period. The interest rate remains fixed regardless of the timing of loan repayment. For lenders, the interest rate will be visually represented as APY.
Initially, the Levvy team determines the interest rate by considering various attributes of the NFT collection and the fungible token. These attributes include:
  • For Fungible Tokens:
    • Volume (from various ranges)
    • Liquidity score
    • Volatility score
    • Circulating, Total, and Max supply
    • Supply/demand dynamics between borrowers and lenders.
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  • For NFTs
    • Volume
    • Floor price
    • Supply/demand dynamics between borrowers and lenders.
What wallets are accepted in Levvy?
The use of hardware and light wallets is accepted in Levvy. However, if you own a COTAS passport, make sure you have it in your lending wallet when interacting with the platform.
Light wallets: Eternl; Nami; Flint; Typhon; Vespr (mobile); Yoroi; Lace; Exodus; NuFi; Gero; Begin.