NSA Holder (lender/ borrower)

In the DNP platform, when an asset holder initiates a DNP (collateralized loan) contract, they can simultaneously choose whether to place the asset for sale as well. DNP’s asset sale market can support asset holders to obtain cash flow by transferring asset ownership. Asset holders can completely customize the target selling price to find the ideal buyer.

Users who want to borrow DNP tokens from the Pledge liquidity pools must deposit NSA collateralized by corresponding crypto assets . The NSA must be over collateralized to prevent a liquidation event. The Tokens can be deposited into the liquidity pool in exchange for corresponding DNP tokens. Users entails a future obligation to repay a larger, fixed amount of corresponding tokens at a specific point in the future. NSA are secured by over-collateralization and will enable up to a certain percentage (e.g. 70%) of that collateral value borrowed. More details on liquidation will be further discussed in the next section.

Borrowers will be subjected to a unfixed interest rate applied per day. To redeem the collateral NSA, the borrower must pay off their origination balance and compounded interest back to the DNP.