MeltyFi
A lending and borrowing protocol for NFTs with no liquidation risk
Project Information
At a Glance
A lending and borrowing protocol for NFTs with no liquidation risk
Description
MeltyFi is a decentralized NFT liquidity protocol built on XRP EVM Sidechain that revolutionizes how NFT holders access liquidity, it takes inspiration from Willy Wonka's chocholate factory. Traditionally NFT loans are slow and underpaied, some protocols even carry a liquidation risk for the borrower, that is the possibility of the NFT being automatically sold when its value decreases too much. By creating a lottery-based marketplace, MeltyFi enables much faster loans, even partially fulfilled ones, and completely erases liquidation risk, it rewards users for they good behavior and gamifies lending. It is built leveraging some unique features of XRP.
Technical Details
The protocol consists of six Solidity smart contracts running in XRP EVM, implementing UUPS upgradeable patterns. NFT holders create lotteries by locking their assets in the MeltyFiProtocol contract, setting ticket price, supply, and duration (1-90 days). Participants purchase WonkaBar ERC-1155 tickets, with 95% of proceeds distributed to owners instantly and 5% to the DAO treasury. Winners are selected via PseudoRandomGenerator using pseudo-random entropy from block.prevrandao. The protocol features a dual-reward mechanism: all participants earn ChocoChip ERC-20 governance tokens worth 10% of their XRP's USD value (via Band Protocol oracle). Owners can repay 100% of raised funds to recover NFTs, eliminating liquidation risk entirely, up to a deadline. The Next.js frontend was developed using scaffold-eth with comprehensive lottery management, user dashboards, and metadata APIs. We deployed on testnet.
Team
3
Vincenzo Imperati
Raffaele Ruggeri
Francesco Lucibello