XCarnival – a Premium Metaverse Liquidation Aggregator

The project offers a series of unique borrowing and lending opportunities, demonstrating their belief that “anything can be collateral”.

Introducing XCarnival

XCarnival is a unique project that seeks to become a hand-in-hand collaborator with the rapidly-growing concept of the Metaverse. The project is based around providing lending aggregation services, specifically peer-to-peer Non-Fungible Token (NFT) lending and substream token mortgage lending. XCarnival provides liquidity to NFT and long-tail crypto assets, a service that has a high potential for growth considering its unique niche. 

These two services are offered through two interlinked products, XBroker and Megabox respectively. The team believes that practically anything can be collateralized and that this can help develop the Metaverse market to new heights. XCarnival seeks to provide new utility to NFTs and long-tail altcoins by providing them with a concrete lending use case that is a fresh concept to the industry.

XCarnival launched on Binance Smart Chain (BSC) in order to take advantage of the growing community on the chain, along with its fast and cheap transactions. $XCV (the XCarnival BEP-20 native token) has been listed on CoinMarketCap, landing on their front page due to the hype surrounding the release.

Why XCarnival Has an Edge

NFTs and altcoins have been steadily gaining more exposure as the crypto audience expands. However, both forms of assets still struggle with liquidity issues due to a lack of trust in their future. Most lending platforms currently don’t allow NFTs or altcoins as collateral due to their perceived instability and lack of establishment. This is not a problem for XCarnival; the team believes that deserving long-tail projects need sufficient liquidity to become established assets. Their third-party operating platform will scan the contracts of any potential collaterals to ensure they are risk-free.

XCarnival’s lending features rely on their own stablecoin, USDxc. Using a stablecoin helps mitigate volatility exposure, a premium feature in lending.

Offering these options for collateral allows XCarnival to capture a completely new market share – one that is highly saturated with potential considering the growing buzz surrounding NFTs and long-tail altcoins. As the Metaverse continues to grow, the need for a lending and liquidity infrastructure to support the growth is crucial for its future. This is why XCarnival has such a unique edge compared to other lending platforms.

XBroker

XBroker is where users can take advantage of NFTs by using them as collateralized assets for currency lending. This not only gives NFTs a new use case, but it also helps to supply liquidity to NFT markets. Associated mining adds an extra incentive for users to lend or borrow assets through the product.

The XBroker platform is split into three distinct roles for users: borrower, lender, and liquidator.. 

In order to get started borrowing, users need to visit the XCarnival Genesis Mystery Box page and purchase a mystery box. They can also exchange it with the mystery box on Galaxy 1:1. APRs for the NFTs can be found on the farming section of their dApp.

Borrower

The borrower supplies the NFT as collateral for a currency loan by creating a list of terms for the transaction, including loan amount, length, and expected APR. The borrower then selects the NFT that they wish to put forward as collateral. Once they have found a lending partner, the borrower will receive USDxc. While their NFT is staked as collateral, borrowers can collect mining rewards in the form of $XCV. These can be harvested at any time and will be automatically harvested at time of repayment. 30% will be immediately available while 70% will be locked for liquidity and released over time. Borrowers collect 30% of the total mining rewards.

The process allows borrowers to connect with lenders in a stress-free manner, giving both the borrower and lender agency in how the lending deal is reached. If the borrower meets the negotiated terms of repayment, they will receive their pledged collateral back after the terms are met.

Lender

The lender is the user willing to supply the currency (USDxc) to the borrower in exchange for an NFT. Lenders can place bids on NFT collaterals that the borrower can choose from, allowing both sides to reach a preferred conclusion. If the repayment plan is not met, the collateral will be placed into auction and ownership will be transferred. If the proceeds from the auction do not match or surpass the initial lended amount the lender will keep the collateral.

Lenders are incentivized by the interest from the loan, as well as mining their own rewards from lending USDxc. The terms are the same as for borrowers, except lenders can collect their rewards even if the collateral is liquidated. Lenders collect 70% of the total rewards as their exposure to risk is higher than the borrower.

Liquidator

The liquidator is the third party in the loan agreement, and is the potential buyer in the auction liquidation process. The liquidator pays the time-limited auction price for the NFT if the terms of repayment are not met.

Liquidators can search through all active NFT auctions and choose their preferred asset to bid on. If the liquidator places the highest bid for a collateral during the liquidation period, they or the lender can simply click a single button to complete the transaction.

Megabox

Megabox allows users to stake assets and receive a corresponding amount of USDxc to use on XBroker. The main focus of Megabox is to grant sub-mainstream tokens extra utility for lending and liquidating purposes. The product allows users to utilize a variety of assets including long-tail assets like DODO, mainstream assets like BNB, and LP tokens such as CAKE-BNB.

Megabox offers pool mortgage rate setting models and risk-control mechanisms to increase the profit exposure on altcoins. Users can search Megabox to see loan-to-loan ratios (LTV) on assets, as well as check the price at which their collateralized assets will be liquidated. Users can simply visit the Megabox dashboard to check this data.

Megabox users can utilize their USDxc to provide lending services to borrowers on XBroker. They can also participate in liquidation by searching for liquidatable assets and then choosing the amount they wish to clear.

Achieved Goals and What’s in the Future

XCarnival has already achieved many of the milestones on their roadmap on schedule. After their successful launch on BSC, they are still looking forward towards other goals. These include being listed on Centralized Exchanges (CEXes), developing and deploying a multi-chain solution, and building a Decentralized Autonomous Organization (DAO) among other plans.

Concluding Thoughts

With a unique approach to lending, XCarnival seeks to solve liquidity issues by innovating collateral mechanisms. Taking the approach that anything can be collateralized, XCarnival opens up a whole new use case for many tokens that would lack utility otherwise.

Whether you are looking to join the Metaverse, earn interest from lending, or are simply looking for a place to borrow stablecoins with long-tail assets, XCarnival can provide a unique service for you.

To learn more about XCarnival, visit the following links:

Website

Medium

dApp

Twitter

Discord

Telegram

Gitbook

Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.

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Source : bsc.news