Okay, we should be good, sheenia.
Yo, everyone, welcome to the Twitter Spaces with Spice Finance.
We got shirtless in the house.
So let's talk about NFT finance.
I'll let you get connected and stuff, let you just give us a brief intro into what you guys have been doing for the last time. You guys have been working on building on this for a while and I know that you posted a tweet based
saying that you guys have actually been using the protocol with your own eith for the last few months. So you've actually been testing the protocol out. So it'd be cool to hear what you guys have been learning so far.
Yeah, just a little bit more about the protocol and carat works.
Hey, just real quick. Shortlist is messaging me. I think he's having some issues hopping on stage. I think so. Yes. Do you see it? Part of the mouth. I think he could be good now. Yeah, I think he's up. Yo, my bad.
Yeah, okay. There he is. Well now it took me a sec to, took me a sec to see his request that should be good now. Yeah, thanks for having me on. Oh good. Yeah, it's just, I was just saying like you guys have actually been kind of, you built, you sort of,
been testing the protocol with you guys own e-th over the last few months. So be cool first to get it like just a little intro and what spice kind of is, but also just to hear like a little bit about, you know, maybe a couple of stories about, you know,
how the testing and stuff's been going and what you guys experience has been with it. It's pretty cool that you're doing that. So yeah, be cool to hear that. Yeah, for sure. Yeah, I can give a high level overview of that space. And then I can kind of talk about how testing has been going.
So the high level problem that Spice is trying to solve is that lending against NFT backed loans is a pretty complicated process. We think that the complexity involved in doing so really stems from
two things. The first is that NFT lending as an industry is extremely fragmented. There are 30 different NFT lending marketplaces that have popped up that are either live currently or going to be live in like the upcoming few months and each of these marketplaces have
has different lending mechanisms. So some are PAP, some are P2 pool, some are remixed, and then on top of that, as a marketplace, there's a plethora of loans and loan pools within each of these marketplaces. So if you're an individual lender, you have to absorb a lot of information in the space.
in order to do your lending. The second source of complexity really comes from the loans in and of themselves. So the collateral used for these loans are NFTs and NFTs as we all know are relatively illiquid compared to flungable tokens I say.
So the direct consequence of this is that the NFT price action is extremely volatile and that has a lot of implications around the risk and return profile of the individual loans. So if you're a lender looking to create good risk adjusted strategies
the space and then also deploy your capital and earn a solid amount of yield. It requires a lot of financial sophistication to do so and then also a lot of active management. So it's almost like a full-time job if you're looking to deploy capital well across the space. So the solution that Spice wants to do
to bring to solve this complexity problem is essentially to build infrastructure wherein a power users of Spice can log on and spin up vault. And these vaults essentially aggregates all the loans across the industry.
They optimize the loans into a portfolio and then deploy the capital for you. Now the power users will have several numbers that they can pull to adjust the lending strategy of the Bolt. You know, some things include the NFT marketplace. They want to deploy to the collections they want to deploy to and then also
So like the value at risk that they want to incur. However, on the other hand, if you just look, you're just a yield farmer looking for yield in the space or you want to expose into the space, you could just log on to spice, see which vaults are outstanding, which ones, what strategies you would like to use.
And then kind of just deposit your money into those vaults and then earn yield accordingly to those strategies. So the goal of spice is really threefold. The first is that we want a public liquidity into the space by reducing the barriers entry on the lender side.