Both parties (borrower and lender) receive an NFT Bond when creating a loan request or supplying a loan. NFT Bonds are classified as either B or L.
The B NFT Bond is for borrowers who have withdrawn a loan;
The L NFT Bond is for users who have funded a loan.
NFT Bonds are used to secure Loans or Debts. A loan cannot be repaid without the underlying NFT Bond.
The Borrower must provide the NFT Bond + loan to withdraw the collateral and repay the loan.
The Lender must provide an NFT Bond to withdraw the lent-out assets plus the pending interest.
NFT bonds use cases
All NFT Bonds are transferable and redeemable from any other wallet, meaning users can buy or sell them. To make the process seamless, Aada Finance will implement an NFT Bond Marketplace where users can sell their loans or become liquidators.