SPLIQ DEFI Launches New Platform for NFTs Utility
The Nigerian fintech company analyses the volatility of crypto assets such as NFTs using live market data to determine the eligibility of a loan facility over a short period.
SPLIQ DEFI has launched a platform to create more utility for NFTs to integrate the technology into everyday life.
Bankole Olayinka, SPLIQ DEFI founder, said: “Being an avid user of blockchain products like NFTs, we realized that the only way to leverage the value of assets is when we sell. This is a disservice to holders of certain assets that belong to communities that reward members over a certain period,”
“So we came up with the idea of short-term loans for said assets, where holders can get the instant liquidity needed and don’t get to lose their assets as long as they keep to loan terms.”
Upon further research into the idea and possible similar solutions, the team discovered that some services that provided that solution were restricted to a handful of collections.
“So we developed a risk assessment algorithm that analyses live market data to determine the eligibility of assets according to risk appetite configuration. This enables us to provide loan facilities to a larger user base of holders since we don’t have to pre-approve, and they are judged against performance on the market,” said Olayinka.
Currently, the SPLIQ DEFI algorithm covers most collections on the Solana blockchain and can provide loans to more collections than any other liquidity provider in the space. The startup has an average loan volume of over US$300,000 and has processed over 3,000 loans with a default rate of 10 per cent.
“Our algorithm enables us to cover between 700 and 1,000 collections depending on market conditions,” Olayinka added.
“We have been able to optimize our algorithm to scale up with the Solana blockchain so it picks up new collections as they are minted and tracks in real-time to cater to as many users as possible,” said Olayinka.
“We plan on expanding to the Ethereum blockchain in the nearest future. We currently provide liquidity for our loans available worldwide, but we plan on migrating to an open market where we provide risk tiers where users can set up a comfortable risk tier and fund it. So when an asset that fits those risk criteria is analyzed, the system matches it, and if the user agrees with terms, the loan is processed instantly,” Olayinka concluded.