Unloc Litepaper v1.0

Unloc
5 min readFeb 27, 2023

What is Unloc?

Financial Products & Consumer Services platform for NFT Owners on Solana.

Overview

Unloc is a DeFi-native financial products & consumer services platform for NFT owners on Solana. Our first product release will address the illiquidity issue around NFT ownership with our fully customizable peer-to-peer NFT-collateralized loans platform, optimized for both Borrowers and Lenders.

Problem

Non-Fungible-Tokens (NFTs) are synonymous with a deed of ownership, and in these cases to a scarce or even ubiquitous digital item, whether it be a profile picture, illustration, video, in-game asset, a digi-physical item, 1/1 art, or some utility-proxy. The NFT market grew exponentially in 2021, becoming an industry buzzword and dinner table topic. And, while growth has been explosive, these NFTs are inherently illiquid.

The infrastructural and financial tools in the broader non-blockchain world are only now developing for decentralized finance (DeFi) and the, even more, novel NFT economy. There is a great need for access to financial and consumer benefits for NFT owners during ownership, not just during a point of sale.

Art, property, and collectibles in the “real world” have entire industries built around them, from loans and mortgages to marketplaces and galleries, and from rentals and licensing, to name a few. Resolving the illiquidity issues is the first hurdle toward full financial services, and inclusion, for NFT ownership. This is the Unloc mission — to provide the same level and depth of service afforded in the off-chain world to those in the on-chain digital version.

Solution

Optimizing and democratizing access to liquidity for NFT owners via customizable NFT-collateralized borrowing and lending. Following loans, an entire financial and consumer services sector is necessary to support the nascent projects and platforms building with digital property. The same opportunities afforded to owning property, fine art, or collectibles off-chain must come to NFTs — and should be even easier to execute as everything is already digital.

Unloc aims to provide these services, first with an NFT-collateralized loans platform, followed by renting, licensing, and beyond.

First, we will release our fully customizable peer-to-peer NFT-collateralized lending platform that will fulfill our goal of being the primary source of liquidity for NFTs on Solana, then we will begin our expansion into financial products and consumer services.

Unloc lets the Borrower set their own terms; select SOL or USDC as the loan currency, access the best loan-to-value (LTV) ratios, and set multiple sub-offers allowing Lenders to find the perfect terms for their risk profiles, while at the same time empowering Borrowers to unlock the full potential of their NFTs.

Both borrowers & lenders earn $UNLOC simply by engaging in a loan contract, earning token rewards for the duration of the time the loan is active (not-repaid). Unloc Score, based on the $UNLOC staking amounts & total lock-up duration, will determine your voting power. Token reward emissions for the listed NFT collections will be determined by a weekly community vote.

  • $UNLOC Token provides a unique utility mechanism, creating opportunities for NFT projects to access liquidity for their NFT-holding communities.
  • Staking Accounts on the Unloc platform have the ability to vote weekly on the token distribution of $UNLOC across specific collections’ for the rewards emission rates.
  • Staking Accounts with longer lockup periods earn better APR%.

Staking & The Unloc Score

When borrowers & lenders engage in a Loan on Unloc, both parties earn $UNLOC tokens — these token rewards are emitted as Unloc’s liquidity mining mechanism. Users have the ability to claim their token rewards and auto-lock them into a Staking Account. Staking Accounts are generated each time a user claims their token rewards, and are locked up for flexible durations. Users can choose to merge Staking Accounts once rewards have been claimed. Users will be able to view and track their multiple Staking Accounts, the lock-up durations, and APR% under their wallet-based profile. Users can have multiple Staking Accounts locked up for different lengths of time.

These Staking Accounts will be assigned an Unloc Score based on the total number of tokens staked and the duration they are locked up*.*

Voting

Users have Unloc Score based voting power on how token rewards are distributed. The higher an account’s Unloc score, the more voting power they have on what percent of token rewards (liquidity mining emissions) go to specific collections listed on the platform. Users will be able to split their voting power and won’t have to use all their voting power for a single collection. Votes will be held on a weekly basis. As a result, DAOs & NFT communities can add value to their holders via votes to optimize token rewards on their respective collections.

A full PDF version of the Litepaper with fancy graphics can be found here: https://docsend.com/view/unre9a7jbruzbiub

Also, don’t forget Devnet 2.0 is live!

We’re calling on the whole ecosystem to come to partake in the Unloc platform and ultimately unlock the full potential of their NFTs. We promise it will be worth your while. ;)

We’re super excited about what we’re developing and believe in the future intersection of NFTs x DeFi. We plan to be at the forefront of financial products and consumer services for NFT owners on Solana, join us!

Follow us on Twitter and join our Discord for alpha before it drops.
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UNLOC LINKS 🔗
Website: unloc.xyz
Twitter: @UnlocNFT
Discord: discord.gg/UnlocNFT
Instagram: @UnlocNFT

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Unloc

Fully customizable NFT-collateralized loans platform 🔑 built on and backed by Solana.