📚 How Does Levvy Work?
Core Mechanism
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.
The Lending Process
Asset Selection
Choose NFT or token to use as collateral
Loan Offers
Review competitive offers from lenders
Accept & Receive
Accept best offer and receive ADA instantly
Repay or Extend
Repay loan + interest or extend terms
Key Features
🔒 Collateral Management
- Assets are locked to your stake key in the smart contract
- You maintain ownership until loan is repaid or foreclosed
- Transparent on-chain custody
⏰ Loan Duration
- Fixed two-week lending periods
- Option to extend loans on new terms
- No automatic foreclosures
💰 Interest Rates
The interest rate remains fixed regardless of when you repay within the lending period. This provides certainty for both borrowers and lenders.
Interest Rate Determination
The Levvy team carefully determines interest rates by analyzing various attributes:
For Fungible Tokens
📊 Trading Volume
Analyzed across multiple time ranges
💧 Liquidity Score
Available market depth and spread
📈 Volatility Score
Price stability over time
🪙 Supply Metrics
Circulating, total, and max supply
⚖️ Market Dynamics
Supply/demand balance between users
For NFTs
📊 Collection Volume
Historical trading activity
💵 Floor Price
Minimum market valuation
⚖️ Market Balance
Borrower/lender equilibrium
Important Considerations
Loans are not automatically foreclosed. Lenders must manually initiate the foreclosure process, which may provide borrowers with a limited window to resolve issues.
For Lenders
- Interest rates displayed as APY (Annual Percentage Yield)
- Competitive bidding ensures market-driven rates
- Risk assessment tools provided
For Borrowers
- Clear upfront costs
- No hidden fees
- Transparent terms
Platform Benefits
- Instant Liquidity - Access funds immediately upon loan acceptance
- Competitive Rates - Market-driven pricing through lender competition
- Flexible Terms - Extend loans if needed
- Secure Custody - Smart contract-based collateral management
- No Sell Pressure - Keep your assets while accessing liquidity
Ready to start? Visit Levvy.fi to begin borrowing or lending. Detailed guides will be added to this documentation soon.