Non Fungible Positions
Each liquidity provider's deposit on the Atlendis protocol is represented by an NFT position with unique artwork.
The liquidity provider's positions are characterized by:
- Their chosen lending rate.
- Deposited amount which can be broken down into:
- Borrowed amount (if any)
- Unborrowed amount (if any)
Each deposit is unique and timestamped. If liquidity exceeds the amount borrowed, lenders are matched firstly according to their tick’s rate (the lower first), and secondly according to their deposit’s epoch (the early depositors first).
The Atlendis position NFTs cannot be transferred to other parties. If a liquidity provider chooses to withdraw their funds from the NFT position, the NFT associated with that position will be burned.
The NFT positions offered by the Atlendis protocol provide several benefits, including the following:
- Non-dilution of liquidity providers: When new liquidity providers add funds to the pool while a loan is ongoing, the existing liquidity providers' lent amount remains unaffected. The new depositors can have their funds borrowed either when the borrower takes another loan from the pool, or when the existing lenders exit the pool.
- Predictive APY: By analizing the NFT parameters, one can easily predict the future returns.
- Limited exposure to default risk: Liquidity providers are only exposed to the default risk of their positions. If they have not lent funds to a defaulting borrower, either because they did not select that borrower, set a lending rate higher than the market, or their position was not yet borrowed, they will not be exposed to any losses.
More information is available in the documentation user manual.