Wasabi Protocol is thrilled to announce the upcoming launch of our pioneering "Buy Now, Pay Later" (BNPL) product. Our BNPL stands head and shoulders above recent perpetual lending protocols in several key aspects, offering both traders and liquidity providers enhanced benefits.

Our unique solution affords incredible new benefits to traders and lenders.

Traders:

• No hidden fees

• No interest rates

• No loans

Lenders:

• Earn on your NFTs

• Collect interest upfront

This new product is set to unlock a new dimension of flexibility within the NFT market. Let’s dive into how this is all possible. 

Options vs. Lending

Unlike predatory perpetual lending models, Wasabi’s BNPL product is built around options contracts. This gives traders the ability to secure the right to buy an NFT at a later date, locking in today's price. Buyers know exactly how much they will pay at what time. 

Additionally, traders are protected for the entire duration of the options contract, rather than being subject to their loan being called at any time with very little time to repay. Physically settled, fully collateralized and pre-dated options contracts provide buyers and sellers the necessary flexibility.

Due to not having a third party required to give out a loan, Wasabi’s BNPL transactions cost 50% less gas than Blend.

Risk Management

Perpetual lending peer-to-peer models expose lenders to non-payment risk if a borrower defaults. In contrast, Wasabi's model mitigates this risk. If the option buyer cannot fulfill the contract, the option seller (liquidity provider) retains the premium paid and the NFT, mitigating any downside risk.

Interest Rates & Liquidations

Wasabi’s protocol has no interest rate and does not rely on Dutch auctions to trigger liquidations. While innovative, Blend’s approach can be unpredictable and risky for lenders. However, Wasabi provides a more predictable model with set option premiums and expiry dates, which offer a more controlled environment for traders and liquidity providers. 

Open Market to Unwind Positions: Traders can exit their positions at their discretion by listing options positions for sale on Wasabi’s secondary market or their favorite NFT marketplace. 

Ease of Use

Wasabi provides a seamless user experience, free from the complexities of off-chain protocols, auctions, and refinancing considerations, making it more approachable for novice and seasoned traders alike.

Wasabi Protocol's BNPL is set to redefine the NFT trading landscape by marrying the power of DeFi with the potential of NFTs. Trade now at Wasabi.xyz!