Levvy is an innovative lending protocol that allows NFT and Fungible Tokens (FTs) owners to access instant liquidity from lenders at efficient market rates.

By fixing the interest rates and duration of loans within the protocol itself, Levvy allows lenders to compete on the value of the loan given for each asset, providing borrowers with the best loan opportunities while simultaneously making it the simplest and most attractive place for lenders to generate yield on their ADA.

[Levvy](https://levvy.fi/loans)

What is Levvy?

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

By utilizing their NFTs or Fungible Tokens 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.

**Interest Rate**

The interest rate represents the amount that the lender will receive and the borrower will pay for the loan within a designated two-week period, commonly referred to as the lending period. The interest rate remains fixed regardless of the timing of loan repayment. For lenders, the interest rate will be visually represented as APY.

How does Levvy work?

When offering a loan, lenders have the convenience of submitting one or more offers with their preferred amount. They can then patiently await the acceptance of their loan by a borrower, eliminating the need to actively seek out borrowers.

This streamlined process allows larger lenders to provide substantial loan amounts without the need for detailed oversight or micromanagement.

LTV (Loan-to-Value) is a very important ratio when lending, we advise all lenders to understand the concept before submitting an offer. The LTV ratio is the loan offer compared to the current floor price of the NFT. Higher the LTV, higher the risk.

**What happens to my ADA when my loan offer is accepted?**

Your ADA will remain staked in your stake pool until it is accepted in a loan offer. As soon as it gets accepted, it will then be instantly sent to the borrower's wallet so they can use it for multiple reasons, therefore leaving your wallet through Levvy's smart contract transaction approval.

**What happens to the borrower's NFT if the loan is not paid back?**

In the event of loan default, the lender will have the option to foreclose the loan, recieving the NFT utilized as collateral.

**What happens to the ADA if the loan is paid back?**

Once the repayment is confirmed, the lender receives their ADA back in full + interest - fees. The borrower transfers the loan amount plus any accrued interest, back to the lender's designated wallet through the Levvy smart contract.
With the successful repayment, the lender's involvement in the loan concludes. The lender retains their ADA without any further obligations related to the specific loan agreement.


*The ADA provided as a loan will continue to be staked in your stake pool until it is utilized by the borrower.
Moreover, it is important to note that the offered loans do not have a predetermined expiration date.*


**Fees**

Levvy has implemented a dynamic fee structure that ensures a balanced allocation of fees between lenders and borrowers. The fee structure begins at 1.25%.

Lending

**Here are some tips:**

1. Avoid losing money, before lending, research the price of the NFT or Token you will have as collateral

2. When lending ADA and having NFTs as collateral, search for the base price and best offer for the collection if you need to sell.
- Search the floor price and best offers at [jpg.store](jpg.store)
- Remember that for the sale of NFTs there are royalties and platform fees
- [How to Sell an NFT](https://help.jpg.store/how-to-sell-an-nft/)

3. To lend ADA and have tokens as collateral you can search for prices at taptools.io
- To sell tokens at the best price visit [dexhunter.io](dexhunter.io)

How to reduce risks when lending

Guide

Learn how to have returns above 100% with low risk on Cardano. Very easy with a few steps.

How to have returns above 100% with low risk on Cardano

How to have returns above 100% with low risk on Cardano

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