• Pricing: Premium
• Categories: DeFi, Lending/Loan, , ,

Texture Finance Summary:

Texture Finance is a decentralized P2P lending platform on Solana that allows users to borrow and lend tokens with high LTV ratios and fixed rates.

Texture Finance Description:

Texture Finance is a P2P lending platform on Solana that connects lenders with borrowers in a decentralized manner.

NOTE: NFT lending/borrow support features are now deprecated. See the update section below for more details.

It offers high LTV token and NFT loans with fixed rates and no liquidation, focusing on three main areas: borrowing and lending tokens, borrowing and lending NFTs, and borrowing SOL with NFTs.

Key Focus Areas:

1. Borrow and Lend Tokens:

Texture enables users to borrow and lend tokens directly between each other using tokens as collateral for a fixed period of 7 days.

Borrowers lock their collateral tokens to borrow other tokens and have 7 days to repay the loan with interest, or they risk losing the collateral to the lender.

Lenders place lending offers specifying the offer size and LTV. The protocol doesn't rely on oracles, so lenders decide on the risk they are willing to take and are responsible for monitoring their positions.

2. Borrow and Lend NFTs:

Similar to token lending, users can also use NFTs as collateral to borrow other assets. This provides additional flexibility and utility for NFT holders.

3. Borrow SOL with NFTs:

Users can use their NFTs as collateral to borrow SOL, providing a way to leverage their NFT holdings without having to sell them.

Texture Finance revolutionizes P2P lending on Solana by offering high LTV, short-term loans without the risk of liquidation.

With its focus on tokens and NFTs, the platform provides unique opportunities for both borrowers and lenders, making it a valuable addition to the DeFi ecosystem.

UPDATE: As of 11th/June/2024 Texture Finance officially announced on X (Twitter) that they are sunsetting the NFT lending/borrowing features and only focusing on fungible tokens:

https://x.com/texture_fi/status/1800599056873381997

Texture Finance Pros:

1. High LTV Loans: Offers high Loan-to-Value ratios (>70% - 90%) for short-term loans, allowing borrowers to hedge token price exposure or gain leverage.

2. No Liquidations: Loans are not subject to liquidations due to collateral price fluctuations during the loan period.

3. High Returns for Lenders: Unique high-risk and high-return lending experience, with APRs exceeding 100%.

Texture Finance Cons:

1. Beta Stage: The protocol is currently in public beta, so users should exercise caution.

2. Market Risk: High LTV loans carry inherent market risks, especially if collateral prices drop significantly

3. Complexity for New Users: The advanced financial mechanisms may be difficult for new users to understand and utilize effectively.

Texture Finance Use Case:

1. Token Holders: Users looking to leverage their token holdings for short-term loans without the risk of liquidation.

2. NFT Owners: NFT holders who want to unlock liquidity from their assets without selling them.

3. High-Risk Lenders: Lenders seeking high returns by offering loans with high LTV ratios in a decentralized environment.