How does Volt work?

Volt lending and borrowing 101

With Volt, token and NFT holders have the opportunity to unlock liquidity without the need to sell their assets.

By utilizing their Fungible Tokens (and NFTs in the near future) as collateral, users can instantly take loans based on the value of their assets, enabling them to free up capital for various purposes while taking into consideration the interest rates associated with the borrowing process.

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Interest Rates & Loan durations

Interest rates in Volt represent the earnings for lenders and the costs for borrowers over a specific lending period. These rates remain fixed regardless of when the loan is repaid and are displayed as APY for lenders.

To determine the most suitable rate for each token, the Volt team evaluates various factors, including:

• Token volume

• Liquidity score

• Volatility score

• Tokenomics

• Holder metrics

• Supply and demand dynamics between borrowers and lenders

Loan durations are also pre-set and fixed, where each token may have different durations depending on the same factors above. This is done to ensure less pools co-exist and liquidity is concentrated.

This rigorous approach on fixed interest rates and loan durations ensures an optimal lending experience, promoting market efficiency.

Volt is ultimately designed to simplify and streamline lending and borrowing, promoting financial opportunities for all participants in the Base ecosystem.