Lemur is a peer lending protocol that provides instant liquidity on NFTs. We think it is likely that NFTs will become increasingly important to global finance. In particular, NFT-ized mortgages will eventually become a multi-billion dollar market in several countries. Our goal is to be the top nft-financialization platform by the time that happens.

There is significant current demand, so it makes sense to launch once you have an attractive and safe protocol. Lemur avoids two serious problems with current and upcoming nft platforms: either protocols can’t safely handle price manipulation, or they are too permisionful and can’t easily scale. We chose Solana because it is the highest performance blockchain currently available and it has a very active NFT market. Let’s talk about the protocol.

Lemur uses an order book to match borrowers to lenders providing fixed-term, fixed-interest loans.

Lenders decide the size of loan they are willing to offer for any NFT in a given collection, and borrowers can take any order on the book. Borrowers can only withdraw a loan up to the size of this bid.

After the loan term ends borrowers can repay the principal + interest to redeem their escrowed NFT. Otherwise the loan defaults and the lender redeems the NFT instead.

Initially, loans will all be 2 weeks in duration and interest will be fixed.

The majority of volume is near the floor so we will start by offering liquidity on floor NFTs.

Once a match is made, sides of a loan will receive NFT assets representing their position.

This unlocks many capabilities:

We will share more about the protocol and its history in the coming days. Next up: A comparison of Lemur and competing protocols.