Detailed analysis of the Spice Finance project – NFT Lending Aggregator platform

About the Spice Finance project 

Spice Finance is an NFT Lending Aggregator platform built on the Ethereum network. The project helps lenders to passively deploy capital into the NFT lending market, generate profits, and improve the complex and time-consuming lending process by aggregating loans from multiple NFT Lending platforms different.

In addition, Spice Finance also implements Spice Vaults, where users can deposit money for continuous profit through the guarantee of NFT loans. The Spice Vaults provide users with safety and confidence in lending and investing in the NFT market.

Currently, there is only one active Spice Vaults on the platform and that is the Prologue Vault. To participate in Prologue Vault, users need to own at least one NFT in the 555 Prologue NFT collection. These NFTs can be purchased on OpenSea or Blur via the link provided.

Prologue Vault offers a medium risk lending strategy and allows users to access diverse NFT lending yields on multiple platforms instantly.

After users deposit wETH tokens into Prologue Vault, Spice Finance will send that money to NFT Lending platforms such as NFTfi, Arcade, X2Y2, BendDAO and DropsDAO to generate profits for users.

However, if the mortgage NFT that Spice Finance lent to is liquidated for some reason, the platform has two workarounds as follows:

• For the P2P marketplace (NFTfi, Arcade and X2Y2), Spice will activate the liquidation engine when borrowers are unable to repay their P2P loan. Spice will then list mortgaged NFT on all available Marketplaces like OpenSea, LookRare… with a repayment value of 1.1 times the defaulted loan. If someone bids for that price or higher, Spice will accept that price and liquidate the property. Otherwise, Spice will continuously re-list the NFT at 99% of the previous listing price, and perform a re-listing every 3 hours until the NFT is sold. The revenue earned from the liquidation event will be redistributed to users in the Spice Vault.
• For P2Pool Markets (BendDAO, DropsDAO): When NFTs collateralized on the BendDAO and DropsDAO platforms are liquidated, an auction process will take place to find the highest value. The proceeds from the liquidation event will be transferred to the related LP Vaults, including Spice. Spice will then redistribute this money to users in the Spice Vault.

The unique features of Spice Finance

Spice Finance is planning to develop some more products in the future, including:

• Prologue Leverage: A special benefit for Prologue NFT owners, allowing them to use leverage to increase profits from their Prologue Vault.
• Flagship Vault: A new Vault that users can deposit wETH tokens into for profit without having to own Prologue NFT.

Tokenomics

The project has not announced the official tokennomics. We will share this information with you when there are latest updates from the project.

Investors

On October 27, 2022, Spice Finance announced the success of raising capital, raising a total amount of 1.7 million USD. Shima Capital took the lead with the participation of many other investors such as ProtoFund, Nxgen, Origin Protocol…

Development team

Currently, the project's development team has not been officially announced. However, we will continuously update the latest information about the development team when there is a change or information is published.

Epilogue

The article introduced the Spice Finance project. The platform provides an easy and convenient lending solution on NFT Lending platforms, helping users optimize their deposits. Hope the information in the article has helped people better understand Spice Finance and how it works. You can follow the latest information about this project at the Social pages below.
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