Paddle Finance
  • Introduction
  • V1 Liquidity Solution
    • Basket Collateral
    • Collateral Loan
      • Peer-To-Peer Lending
      • Peer-To-Crowd Lending
    • OTC Exchange
    • Parameters
  • V2 Liquidity Solution
  • Peer-To-Pool Lending
    • Market List
    • Interest Bearing Token (iToken)
  • Risk Framework
    • Asset Risk
      • From Risks to Risk Parameters
      • Risk Parameters
    • Liquidity Risk
      • Utilization
      • Interest Rate Model
  • Liquidation
  • Price Oracle
  • PADD Liquidity Incentives
  • BGT Emission + Beratrax Integration (Thoon)
  • User Guide
    • Borrower
    • Lender
  • Paddle Battle
    • Mechanics
    • Revenue
    • Referral System
  • Governance
    • PADDenomics
    • About PADD
    • PADD Reward
    • Fee Collection & Distribution
  • User Guide
    • Borrower
    • Lender
  • OTC Trade
  • API Documentation
    • API Guide
    • Loan Endpoints
    • OTC Endpoints
    • REST Endpoints
    • Tutorials
      • Source
      • Parameter Explanation
      • Loan - Create order
      • Loan - Cancel Order
      • Loan - Lend
      • Loan - Repayment
      • Loan - Liquidate
      • OTC - Create OTC Order
      • OTC - Cancel Order
      • OTC - Take Order
  • Links
    • Website
    • Twitter
    • dApp (Mainnet)
    • Audit Report_V1
    • Brand Kit
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  1. V1 Liquidity Solution

Basket Collateral

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Last updated 1 year ago

Paddle Protocol goes beyond handling individual assets by incorporating the "Basket Collateral" concept, a strategy borrowed from traditional finance’s security lending and borrowing practices. This approach allows asset holders to consolidate multiple assets into a single financial contract, enhancing the overall utility of their portfolio.

Benefits of Basket Collateral:

  1. Efficiency in Transactions: By grouping assets, such as multiple high-value NFTs, into one contract, asset holders can significantly reduce transaction costs. For example, instead of incurring tenfold gas fees for ten separate BTC NFTs, they can financialize all at once, saving on expenses and streamlining the process.

  2. Optimal Use of Low-Value Bespoke Assets: Basket Collateral also proves ideal for enhancing the utility of lower-value bespoke assets. These can be bundled with main assets, allowing them to serve as complementary additions within a larger financial package.

This functionality not only makes high-value collateral loans or over-the-counter (OTC) trades more efficient but also optimizes the use of bespoke assets, providing a comprehensive solution that adapts to the diverse needs of asset holders.