TAKER — Liquidity Protocol for Novel Crypto Assets
Author-Pratik
Taker is a liquidity protocol for novel crypto assets. It uses a quote-by-lock-in approach to utilize novel crypto assets. Asset holders can utilize their locked liquidity by borrowing stable coins.
Taker uses NFT assets as the starting point to provide lending services for all kinds of novel crypto assets of the future. It will be the first NFT loan protocol that supports Uniswap V3 LP tokens. It increases the liquidity for NFT assets and improves the efficiency of NFT lending and borrowing services.
What are the current problems with NFT markets?
1. Poor Liquidity
Current NFTs are very illiquid and lack application scenarios and liquidation tools.
2. No Application Oracles
AMMs have a very high liquidation risk and pricing difficulty for NFTs
3. Low Interoperability
NFTs cannot do liquidity mining like ERC20 with AMM trading pairs.
Solution by Taker
1. Locking
Taker removes the requirement for oracles by locking price and peer-to-peer quoting.
2. Token Incentive
Both borrower and lender will get incentives in the form of ecosystem tokens as rewards.
3. ERC-20 Token Minting
TAI is an ERC-20 asset and lenders can use it to mint the ecosystem token or join other DeFi activities. It is an interest bearing token. A lender can get an equal amount of TAI after lending DAI. TAI serves as a gateway for NFT to the DeFi world. It is not tethered to fiat. Its price reflects the healthiness of the NFT market.
4. Ecosystem Rebalance
You can use TAI to buy newly issued NFTs through INO activities from the Taker platform.
What does Taker do?
With the launch of Uniswap V3, the LP tokens are changed from ERC20 into NFTs. Taker has developed a specially designed incentive mechanism to attract Uniswap V3 LP token holders, which provide sufficient asset and liquidity. With the huge traffic generated from V3 LP tokens, Taker can redirect lenders for the whole loan market for NFT assets.
NFT Lending
The Taker protocol designs a new model for NFT lending. Soon, NFT synthetic indexes will be introduced to DeFi NFT assets and stimulate the liquidity and turnovers of NFT’s. TAI is an interest-bearing token. After lending out DAI, a Lender can get an equal amount of TAI. However, as an ERC20 Token, TAI is not fiat-tethered and only serves as a gateway for NFT’s to enter the DeFi world.
1. The price of TAI reflects the healthiness of the NFT marketplace
2. Multiple scenarios for the TAI circulation to incentivize lending & borrowing
3. A link between the DeFi world and the NFT world
4. Essential to building a pool-based NFT lending protocol
Lending and Borrowing
NFT tokens have different IDs corresponding to individual assets, therefore it is impossible for the market to price them uniformly. In Taker protocol, an NFT asset is inherently deemed to have a value of zero, which changes only after the corresponding lending transaction is completed. Next, the lender becomes the temporary holder of the NFT asset and receives interest-bearing tokens and homogenized ERC-20 token TAI.
Cross-chain Bridge
Currently, DeFi is built on Ethereum, supporting almost exclusively Ethereum assets. However, quality assets across other public chains should be made available for DeFi, too. It is utterly necessary for the Taker Protocol to deploy a multi-asset, cross-chain bridge contract with reference to Chainsafe’s Chainbridge solution. This contract can transfer ERC721 assets.
The Taker protocol builds cross-chain bridges to connect various public chains, such as ETHEREUM, POLKADOT, NEAR, SOLANA, and Polygon. These bridges will enhance the efficiency of asset transfer and enrich application scenarios.
DAO Governance
The Taker token ensures effective collaboration for holders to use their voting power and participate in community governance.
Layer2 Network
The Layer 2 network is constructed using Polygon to reduce gas cost, improve asset turnovers, and expand data processing capacity. The network’s DeFi attributes and NFT ecology are supported by our protocol.
Pricing Process
NFT types supported:
Taker supports Encrypted Collectibles, Commercial Papers, Metaverse Assets and Physical Assets.
Protocol Overview
What are the uses of Taker Token TKR?
1. Governance
Holders can participate in on-chain governance and voting as decision-makers for major events.
2. Dividends
Holders of the TKR token (Our ecosystem token) will receive a share of the platform’s interest or liquidation income.
3. Collateralization Rate
TKR holding can affect the loan-to-value ratio in the future thereby reducing the collateral required for taking out loans.
4. Staking
TKR holders can stake their tokens to receive various staking rewards.
Images courtesy of TradingView and Taker Team.
