NFT Positions

This section explains how user positions are defined as NFTs on ZeroLend One.

One of the core features of ZeroLend One is the ability for users to represent their positions as NFTs (Non-Fungible Tokens). This enhancement offers users a new level of flexibility, ownership, and security.

Below, we explain what this means for users and how they can benefit from it.

• NFT Representation of Positions: Each lending or borrowing position on ZeroLend One is uniquely represented by an NFT. These NFTs are ERC-721 tokens that hold all the information about the user's position, including the amount lent/borrowed, interest rates, collateral, and more.

• Transferable Ownership: Unlike traditional lending protocols, ZeroLend One allows users to transfer their positions. This means that users can sell, trade, or gift their lending or borrowing positions as NFTs to other users. Transferring an NFT transfers all associated rights and obligations, offering unprecedented liquidity and flexibility.

• Easier Collateral Management: NFTs can represent complex collateral arrangements, allowing for innovative lending products and strategies. Users can use a variety of assets as collateral, all tracked and managed through their position NFTs.

• Multiple positions per wallet: NFTs allow users to have multiple positions per wallet in a gas-efficient way, addressing one of the major UX pain points for users utilizing a lending protocol.

• Integration with DeFi Ecosystem: ZeroLend One's NFT positions can interact with other DeFi platforms and services like OpenSea, Elemental, etc. Users can leverage their NFTs for additional financial operations, such as staking, yield farming, or as collateral for other loans.

How does it work?

Creating a NFT position works in a simple three-step process.

• Creating a Position: Users can create a lending or borrowing position through the ZeroLend One platform. Upon creation, an NFT representing the position will be minted and transferred to the user’s wallet.

• Manage Positions: Users can view and manage their positions through the ZeroLend One dashboard. Options include modifying the terms of the position, adding or withdrawing collateral, and transferring the NFT.

• Withdraw or close a position anytime: Users can withdraw their assets anytime and burn their NFT.

Technical documentation for the NFT Position Manager will be published along with the launch of ZeroLend One.