If you still have any questions or issues after reading this introduction feel free to ask on our discord.
What is MeltLabs?
MeltLabs is a decentralised non-custodial liquidity market protocol where users can participate as lenders or borrowers.
Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow by providing their NFTs as a collateral (overcollateralized loans).
How do I interact with MeltLabs?
There are 4 ways to interact with the MeltLabs protocol:
1- Provide liquidity and earn passive income.
2- Use your NFTs as a collateral and borrow USDC.
3- Flag undercollateralized positions (Look at Liquidation for more information).
4 - Liquidate flagged undercollateralized positions (discounted from the market floor price)
MeltLabs allows you to get liquidity while still owning your NFTs.
There are many ways you can earn using our protocol, namely:
1- Provide liquidity to earn a certain APY.
2- Liquidate undercollateralized positions to gain a fee on the transaction.
3- Buy a Liquidated NFT at a discount and sell it for profit.
4- Access to further liquidation discounts for MeltLabs NFT holders
Where are your funds/NFTs stored?
Your funds/NFTs are allocated in a smart contract. You can withdraw your funds/NFTs from the pool whenever you like, we have no control over your funds/NFTs.
Is there any risk with MeltLabs?
Yes there are, but only if you are not careful.
Interacting in the right way with the protocol will allow you to gain a lot of value from MeltLabs. The biggest risk you face is liquidation of your NFTs, which can be avoided with careful monitoring of your health factor.