Fluid Tokens

A peer-to-peer lending protocol where borrowers set the terms and front their Cardano NFT as collateral for an ADA loan. Lender then choose which loan to fund.

A decentralized marketplace where the NFT owners can unlock the value locked in their NFTs by offering them up as collateral for loans, in ADA, where they set the term of the loan. Lenders then review loan offerings on a lending marketplace and fund which loans they personally find acceptable.

How Fluid Tokens Works

Owners of an NFT can list their NFT, which must be from an approved collection, as collateral for a loan on the Fluid Tokens platform. This NFT owner, i.e. borrower, can set the amount of ADA they are requesting to loan against their collateral, along with the time limit for the loan, and the interest rate they are willing to pay on that loan. The borrower's NFT is then locked in a smart contract, along with these terms, and added to the marketplace for lenders to view.

Lenders browse through a marketplace of NFT collateral offerings and the associated loans, and can select a loan to fund. This marketplace will also include metrics related to previously approved loans for NFTs in each NFT collection, along with collection related data taken from various Cardano NFT marketplaces. The aim of this is to provide more information to lenders amount the collateral and loan offerings they are presented with. Once a lender finds a loan they are happy to funding they simply sign the smart contract and their ADA is sent to the borrower and the timer for the loan is started.

A "Featured Loans" section of the marketplace provides borrowers creating loans, who have burnt a required amount of FluidTokens, with greater exposures to lenders.

Loans must be repaid in a single transaction and borrowers can repay their loans early to reclaim their collateral early. Once a repayment deadline has been reached the collateral is not automatically sent to the lender. The lender needs to manually claim the NFT collateral once the timer on the loan has expired. This function allows the lender to leave the NFT in the smart contract and for the borrower to repay their loan later (for no added interest or late fees) than the expiration date of the loan. If the lender does claim the NFT then the contract is cancelled and they now own the NFT.


Lenders only pay the transaction fee for initiating the loan. Borrowers pay a platform fee proportional to the amount of borrowed ADA (owning FluidTokens can reduce the size of the fee the borrower pays with different tiers of fee discounts available depending on how many FluidTokens the borrower owns).


A DAO of FluidToken holders will be able to vote on various aspects of the protocol, including:

  • Proposals to change and upgrade the protocol (They will also be able to create these proposals)
  • To verify NFT collections for use as collateral on the protocol

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