2.3.1. Lending Pool

Within the platform, users contribute their assets to a large pool of liquidity called the Lending pool. This pool is available for other users to borrow from, and lenders share in the interest that borrowers pay back to the pool. When users supply assets, they receive rewards in TrustNFT tokens for the performance of Lending pool. TrustNFT tokens are BSC tokens that can be redeemed for their underlying assets at any time. In this way, TrustNFT allows users to borrow cryptocurrency assets by using NFT assets as collateral.

One of the advanced features of the lending pool contract is the tokenization of the lending position. When a user deposits assets, they receive a corresponding amount of TrustNFT tokens, which map the liquidity deposited and accrue interest based on the underlying deposited assets. TrustNFT tokens are minted upon deposit – their value increases until they are burned on redemption or liquidated. Whenever a user opens a borrow position, the NFTs used as collateral are locked and cannot be transferred.