🔨Auctions
When a borrower defaults on a loan, the underlying asset is auctioned in order to recoup capital for the lenders in the pool. Below are some important details:
Bid
Enter amount and click "Bid"
The amount you bid will be held in escrow (leave your wallet)
If another bid comes in higher, your bid will be returned (go back to your wallet)
Claim
If you win the auction, you will be able to claim the NFT on the auction homepage or your portfolio page
Click "Claim NFT" and the NFT will be sent to your wallet
Auction FAQs
What is the format of the Auction?
Fully on-chain English Auction
Each bid triggers a deposit of the bid amount and reimburses the previously high bid
If a bid is made in the last 10 minutes, the auction is extended for another 10 minutes
A new bid must be 2% greater than the prior bid
What happens to the Proceeds of the auction?
Capital is returned to the pool lenders in order to make them whole
Any capital in excess of the original loan amount + interest/fees is returned to the borrower
The lenders with the lowest Loan Limit (risk) receive capital first, then waterfalls up
How do I get my NFT if I win an auction?
A winner must go back to the auction page and claim the NFT in order to take possession of it
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