➡️Lending
When offering a loan, lenders have the convenience of submitting one or more offers with their preferred amount and LTV (Loan-to-Value). They can then patiently await the acceptance of their loan by a borrower - while still having their ADA staked in their stake pool - eliminating the need to actively seek out borrowers.
This streamlined process allows larger lenders to provide substantial loan amounts without the need for detailed oversight or micromanagement.
LTV (Loan-to-Value) is a very important ratio when lending, we advise all lenders to understand the concept before submitting an offer.
The LTV ratio is the loan offer compared to the current floor price of the NFT. The higher the LTV, the higher the risk.
The ADA provided as a loan will continue to be staked in your stake pool until it is utilized by the borrower.
Moreover, it is important to note that the offered loans do not have a predetermined expiration date.
Open the website https://levvy.fi/ and connect the wallet of your preference;
Choose "Tokens";
Click on "Start Lending Now";
Choose the Token to which you want to provide liquidity for;
Follow the steps, sign the transaction, and you're done!
To lend, enter both the amount of ADA you would like to offer in total as well as the LTV that you want to offer it at. LTV is based on the current price of the token, so after you submit, it is important to watch the price of the token after you submit as the LTV will change.
LTVs for tokens should generally be less than NFTs as they are more volatile. Borrowers can take portions of your loan offer, so there is no need to try and match the amount you lend with the amount you think borrowers need.
Manage your loans by sorting through Pending and Active loans on the "Manage" tab!
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