How do liquidations occur?
Astaria has no forced liquidations through floor prices or minimum loan-to-value ratios. A loan may only be liquidated if it expires with a positive debt balance. When a lien is liquidated, the collateral is auctioned through a Dutch auction on Seaport. The starting price of the Dutch auction is determined by the liquidationInitialAsk value lien against the NFT. After an auction is completed, the proceeds are returned to the Vault the originated the loan, after a liquidator fee. Any excess funds are returned to the borrower. For more information on liquidation mechanics, see Liquidations.
Which NFTs will I be able to borrow against?
At launch, Astaria plans to support terms for leading NFT collections through its whitelisted strategist partners. Smaller collections may be supported at the discretion of individual strategists through
As a liquidity provider, how can I withdraw funds?
Providing capital to
PublicVaults operates around an epoch-based system. Strategists define an epoch length that is used to determine the maximum loan duration and the withdrawing schedule of LPs. To exit a
PublicVault as a liquidity provider, you must signal to withdraw one epoch in advance. At the beginning of the next epoch, the
PublicVault will begin earmarking funds for you to collect by the end of the next epoch. The epoch system ensures that Astaria Vaults can be safely wound down without pausing withdrawals.
Creating a Vault
How can I become a strategist?
Anyone may create a
PrivateVault with a strategy and fund them with their own capital. Alternatively, anyone may create a
PublicVault to attract capital from other LPs. However, only PublicVaults from whitelisted strategists will be advertised on our UI (but borrowers are served terms from every active Vault).
Should I create a PublicVault or PrivateVault?
PrivateVaults offer more flexibility to strategists. To ensure that funds are available for withdrawing liquidity providers, loans issued by
PublicVaults cannot cross two epoch boundaries, while
PrivateVaults have no such duration restriction.