💰Information on Borrowing
Borrow HBAR, all you need to know
-Borrow from Hashroom
Anyone with an NFT from the Collections set up in Hashroom can borrow. Once a Collection is approved and liquidity is provided on the platform, Borrowers can get a loan on the NFT they hold in their wallet.
*Hashroom will approve specific collections based on many factors, such as volume traded, community demand, founders, etc.*
Once the user is on the platform, they can connect using their Hedera Wallet and review all the collections to “Borrow” from. A list of approved collections will be displayed, showing you the most considerable loan available for your NFT. Once you see the collection you’d like to borrow against, select it along with the NFT you’d like to put up as collateral. At this point, it will display the duration and the amount you will have to pay back before the end of the time shown.
Once the loan is accepted, Hashroom will take a 2% fee of the amount of HBAR borrowed, and Borrower will then receive the rest of the HBAR for you to do as you like. The Borrower may pay back the loan + interest (4% for a week) at any time before the loan expires. You will then receive your NFT back once the loan is paid.
7-day and 14-day loans will be available in specific collections. If you default on the loan, your NFT will be available to be claimed by the Lender. You can pay back anytime as long as the Lender hasn't claimed.
-Example of Borrowing in Hashroom
You borrow 1000 HBAR for your NFT.
You will receive 980 HBAR & Hashroom will receive 20 HBAR.
You must repay 1040 HBAR to the Lender by the end of the loan.
You receive your NFT back.
-Steps to Borrow HBAR
Tips:
Rarity doesn’t matter; use your least rarest NFT
Browse around often for the best loans available
Strategize in which NFTs have a chance of going up in price and collateralized to pick up more of that kind.
*Hashroom’s fee will be subject to change depending on market conditions*
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