Meet the Actors
- Liquidity Providers
Strategists deploy vaults with a list of loan terms matched to supported NFTs. For example, a strategist may allow a 10 ETH loan with a 10% interest rate to be taken out against a specific NFT for one month. These terms can be continuously updated as markets fluctuate.
A strategist may provide their own capital to fund these loans through their own
PrivateVault. Strategists for PrivateVaults bear all risks for loan defaults on their own terms, but collect all interest on provided loans.
Whitelisted strategists can deploy
PublicVaults that accept funds from other liquidity providers.
To create a Vault, a strategist creates a terms sheet (a strategy) which determines the loan details a borrower has access to for a given NFT (see Loan Terms).
Strategists will compete for the most favorable terms to borrowers while ensuring their strategies' yield to liquidity providers is attractive enough to draw in capital. This competitive balance between attracting borrowers and liquidity providers ensures that Astaria's strategies will provide fair and accurate terms.
Borrowers are NFT holders that want access to liquidity against NFTs supported by strategists. Unlike other protocols, Astaria's borrowing process is instant and permissionless. When a borrower takes out a loan against an NFT, they lock their NFT with the Astaria protocol are minted an ERC-721
CollateralToken as a receipt of deposit. When there is no outstanding debt against the
CollateralToken, the borrower may reclaim their NFT. If a loan exceeds its duration with a positive debt balance, their loan is liquidated and their NFT is sent to auction. See Liquidations for more information.
See Loan Terms for more information.
Liquidity providers earn interest on funds provided to
PublicVaults. When a liquidity provider deposits capital into a
PublicVault, they are minted yield-bearing ERC-4626
PublicVaults operate around an epoch-based system that restricts withdrawals, liquidity providers must signal that they wish to withdraw at least one epoch in advance.
See Epochs for more information.