Glossary

Roles

Lender

A user of BAE Protocol who lends WHYPE or kHYPE for NFT's as a collateral. Lenders can:

• Create Lending offers – proposals for Borrowers to review and accept, thus activating loans.

• Fill available Loan requests – proposals made by Borrowers, thus activating loans.

• Earn Interest rate as the loans are paid.

• Liquidate loans if they're not paid in time.

Borrower

A user of BAE Protocol who borrows WHYPE or kHYPE for NFT as a collateral. Borrowers can:

• Create own Loan requests – proposals to Lenders to review and accept, thus activating loans.

• Accept Lending offers – proposals made by Lenders, thus activating loans.

• Pay loans along with interest rate.

Metrics

NFT Value

Borrowers on BAE can use NFTs as the loan collateral. NFT value is valuation the collateral asset in loans and offers. It's calculated based on the current floor price of the NFT.

BAE platform regularly pulls updated pricing information through Parsec.fi API and publishes it for all parties interested.

Loan Principal / Loan Amount

Loan principal / Loan amount is the actual amount of WHYPE sent to the Borrower as the Loan becomes Active. It's also an amount the Borrower must fully repay to the Lender to avoid getting liquidated, besides paying the interest.

Loan amount is set by the Borrowers in the Loan request. Loan principal is set by the Lenders in the Lending Offers.

If the Borrower accepts the Lending offer he agrees to fully pay the loan principal set by the Lender together with interest rate. Same goes about filling the loans: the Lender agrees to lend the loan amount set by the Borrower.

Repayment amount

Repayment amount is the max amount the Lenders can get if the loan reaches max duration. The interest payment owed to the Lender grows proportionately from Loan Principal to set Repayment amount by interest rate through loan duration.

Interest rate

Interest rate is the % of growth of the repayment amount from the start of the loan to the end of it based on the loan duration.

Example:

• Loan amount = 1 WHYPE

• Repayment amount = 2 WHYPE

• Interest rate = 100%

• Duration = 1 day

This means that the repayment amount will grow from 1 WHYPE to 2 WHYPE by the end of the 1 day of loan duration.

BAE calculates APR based on the interest rate set in offer and loan and enforces interest rate payment on-chain.

Due date

It's a date before which the Borrower should pay the loan to avoid getting liquidated.

BAE protocol sets the due date automatically when the loan becomes active. It depends on the duration set by the Borrower or the Lender in their Loan request or Lending offer respectively.