Our flagship product (currently in development) is through our unique hybrid collateralized lending. Traditionally, DeFi loans have been reliant on ERC-20 tokens as sources of collateral within lending agreements. This has shown to be promising with lending being a top category in DeFi, NFTs also represent a growing market sector yet lacks DeFi liqudity. By being able to tap into ShezETH/ShezUSD curve pools against ERC-721, collateral bridges the liquidity gap between DeFi and NFTs. Like most DeFi lending markets, a portion of the promised value must be put forward as collateral to account for the chance of default on the loan. This means a borrower has failed to make payment on promised reimbursement to the lender. In such cases, collateral is taken as compensation for the lender to assure repayment of the loaned amount. Oasis is the first hybrid-collateral lending platform which supports both ERC-721 and ERC-20, which empowers adopters flexibility to use their assets as they choose.
As mentioned, traditional sources of collateral within DeFi were limited to a select few assets like Ethereum or USDC, but no more. Oasis allows ultimate flexibility through the possibility of using a diverse range of digital assets as collateral. This includes a variety of ERC-721s, NFT’s, LST’s, and other ERC-20 tokens available to be used as collateral, making the Oasis the one and only hybrid-lending platform.
While taking an Oasis loan, users can put forward collateral in order to borrow shezETH and shezUSD. ShezETH and shezUSD can be allocated in whatever means users wish as long as the health of the loan remains satisfactory. It is important to note the spot price of underlying assets used as collateral will likely change which can have consequences to the loan’s health. Liquidations are handled automatically in which malignant debt is resolved in order to cover balance. For NFT’s, this is done via an asset auction in which defaulted collateral is transacted to the highest bidder. For all other assets, liquidation bots handle resolving the balance.
Collections will be given Loan to Value (LTV) rates and Liquidation Thresholds (LQ) based on a myriad of factors. This is determined by a proprietary risk management algorithm which classifies available assets into ranked tiers. Tier rankings are based on a blend of factors such as volume, floor price volatility, asset history, and distribution of holdings to best categorized asset risk in accordance with collateral requirements.