This is the second tab in Cyan’s dApp. Flash Pawning allows users to receive liquidity upfront for temporarily posting their NFT as collateral. In other words, users can borrow money against their NFTs! Up to 50% of the NFT’s value is possible to unlock. Users will repay the amount borrowed within 24 hours.
Select your NFT to Flash Pawn from the tab. You can use the menu on the left to filter by collection if you are a baller and have too many! Then, click on an NFT to see the Flash Pawn menu and confirm details. This is what the prompt will look like:
After accepting both Accept buttons, you will be able to click Pawn which starts the process of moving your NFT into the collateral contract and immediately releasing Ethereum to you. Remember, Flash Pawn is a 24-hour loan period, so unless the Ethereum is repaid the next day, you will default and lose the NFT.
Clicking on the first Accept means the user agrees that any missed payments will result in a default of the NFT and all payments made to date.
Clicking on the second Accept means the user gives the Cyan wrapper contract permission to move the NFT into collateral, and start the Pawn plan. This is an automated process, and Cyan will NOT move your NFT anywhere outside of the escrow contract.
Only approved projects can be Pawned. Please check our Approved Projects page to see if your favorite project is added! We are frequently adding projects, and we appreciate your patience as we onboard them :)
Make the payments the next day to release your NFT and get it back 🙂. In the meantime, the user will have a Cyan-wrapped version of the NFT which will synthetically have all the utility of the underlying NFT.
Please see details for specifics on what utilities are passed on to the user during the plan.
Updated 3 months ago