Loan terms are published by Strategists, and may be accompanied by a
deadline after which they are no longer available. Multiple loans may be taken out against the same collateral, as long as the projected future debt against the collateral does not exceed a loan term's
maxPotentialDebt value. Note that multiple loans against the same collateral must all be denominated in the same ERC20 token.
Loan terms provided by strategists for borrowers are defined by the following:
Amount: The loan amount, denominated in the ERC20 token used by the Vault.
Duration: The loan duration in seconds.
Interest rate: The interest rate of the loan. All rates on the Astaria protocol are in simple interest and non-compounding. To convert a standard annualized simple interest rate to an Astaria-compatible interest per second value, divide by (seconds per year) and multiply by .
Example: interest per year is .
Maximum potential debt: The highest amount of debt that that may be accumulated against an NFT by existing loans. For example, if the collateral already has a 10 WETH loan at 10% interest for a year, and the proposed loan has a 6 month duration, the potential debt for this collateral would be 10.5 WETH (assuming no repayments have been made), because that is the maximum interest that could be accrued for this 6 month loan. A
maxPotentialDebtof 0 means that no existing loans can exist against the collateral for the proposed loan to be initiated. Note that since potential debt is calculated at loan origination, it does not take into account additional loans taken out against this collateral after the proposed loan has begun. Since loans are repaid by order of seniority upon liquidation, additional loans do not affect senior debt.
Liquidation initial ask: The requested starting price of the Dutch auction if the collateral is sent to liquidation. Note that the initial auction price is set by the most senior lien in the lien stack. In order to ensure that any auction can theoretically fulfill all remaining debt, potential debt may not exceed the liquidationInitialAsk value of more senior liens. For example, if the first (most senior) lien has a liquidationInitialAsk of 10 WETH, the potential debt of that lien and subsequent liens must not exceed 10 WETH. This is iteratively checked as new liens are added: the potential debt of liens in position 2 and beyond must not exceed the liquidationInitialAsk of the second lien, and so on.
Should the NFT go into liquidation, the initial price of the auction will be set to this value. Note that this set as a starting point for a Dutch auction listed on Seaport, and the price will decrease over the liquidation period. This figure is should also be specified in format.