OpenSky

Launched in 2022, OpenSky Finance is a decentralized, omnichain NFT lending protocol operating on the Ethereum blockchain. The company has established a hybrid model that integrates both peer-to-pool and peer-to-peer lending, allowing users to switch between instant and bespoke loans in a single transaction. It is built on top of Aave, a prominent DeFi money market, which enables lenders to earn passive income from Aave and interest from instant loan borrowers with high capital efficiency. For borrowers, the platform allows them to use whitelisted NFTs, such as those from the Bored Ape Yacht Club (BAYC) or CryptoPunks collections, as collateral to instantly take out loans for up to 40% of the NFT's floor price.

A key feature of OpenSky Finance is its discrete time-based liquidation (DTBL) mechanism. This model provides borrowers with a fixed interest rate and protection from forced liquidation due to floor price volatility during the loan term; liquidation only occurs if the loan is not repaid by the end of its term, including a grace period. The business model generates revenue through interest on loans. Lenders can deposit cryptocurrency like ETH or USDC into an EARN vault to receive Aave deposit income and interest from instant loans. They can also use these deposits to fund bespoke peer-to-peer loan offers to potentially earn higher returns. OpenSky Finance has received grants from AAVE Grants DAO, Rarible Protocol, and Alchemy and has secured funding from venture capital firms including MetaCartel Ventures, FBG Capital, and SNZ Holding.

The protocol is governed by the OpenSkyDAO, which consists of holders of the $OSKY token. Token holders can vote on protocol parameters, such as interest fee changes and the inclusion of new NFT collections on the whitelist. The $OSKY token has a total supply of 100,000,000 and was listed on exchanges in January 2024.

Keywords: NFT lending, peer-to-peer lending, decentralized finance, peer-to-pool loans, Aave, omnichain protocol, crypto lending, time-based liquidation, collateralized loans, OpenSkyDAO, $OSKY token, digital asset borrowing, blockchain finance, Ethereum, DeFi protocol, passive income crypto, NFT collateral, bespoke loans, instant loans, crypto loans