A completely decentralized protocol that lets people borrow money from the treasury by producing an NFT. This is to be built on top of LooksRare, because LooksRare is decentralized and hence infinitely composable.

Borrow at floor price

Produce an NFT from an NFT collection on LooksRare. The maximum amount you can borrow against the NFT is the minimum floor price of that collection over the last 30 days.

You can only deposit verified collections’ NFTs - for securing the protocol. Open to any other heuristic to define which collections are accepted

Transfer NFT to contract

The NFT will be in the custody of the protocol contract. The contract pays out LOOKS loan to the NFT sender based on the above heuristic, subject to available liquidity in the contract.

The loan + 10% interest is to be paid back in 30 days.

0.5% interest to the founders, with a switch to irreversibly turn of founder share.

NFT sold upon default

If the amount + 10% interest is not paid back in full in 30 days, the NFT will get listed on LooksRare at the current Floor Price.

Liquidity

Anyone can provide liquidity to the contract.

This liquidity is essential to be able to give out loans.

For providing 100LOOK you get 100 L-LOOK (freshly minted).

If you return 1 L-LOOK to the contract, you get 1/(total no. of L-LOOK in circulation) times the amount of LOOKs in the treasury. Upon returning the L-LOOK, it gets burnt.

Looking to build this?

1ETH bounty to build this!

Why I think this will be huge

NFTs are programable proofs of ownership. Very soon, it might not be uncommon to have NFTs that prove ownership of access to communities, real world assets etc.

This is the crypto native mortgaging.

ABIs

loan( address collection, uint tokenId, uint looks ) public returns( uint loanId )

repay ( uint loanId, uint looks ) public

sellDefaultingNFT ( uint loanId ) public

provideLiquidity ( uint looks ) public

withdrawLiquidity (uint l_looks ) public 

Shout out to Ruchil for brain storming this :)