Lending Agreement

Lending agreements based on arithmetic NFT as collateral Similar to arithmetic value transactions, lending agreements based on arithmetic value NFT as collateral can also be implemented contractually. Miners borrow funds by pledging their arithmetic value assets and use the upcoming cash flows generated by the arithmetic value to repay the capital and interest.

Using Filecoin as an example; Filecoin miners can borrow a certain amount of Fil by pledging the value of their arithmetic, in which case they will have Fil tokens to meet the initial collateral required for Filecoin mining. First the Filecoin miner needs to convert his arithmetic into arithmetic NFTs via the arithmetic token protocol described above, and the owner address of the miner is a multi-signature broadcast address where the miner or holder of the arithmetic NFTs can send a borrowing request via the Sulli lending protocol and send the corresponding arithmetic NFTs to the Sulli lending contract. The lender sends the assets he wishes to lend to the contract, which will then automatically send the arithmetic NFT to the lender and simultaneously send the borrowed assets to the miner's owner address to complete the loan. As the owner's address is jointly controlled by the miner, the arithmetic value NFT (held by the lender) and the verifier, the loan is not dictated by any one party, so the security of the funds and collateral can be guaranteed without overcollateralisation.

If there is no dispute between the borrower and the lender, both parties can repay the capital and interest via multi-signature according to the pre-agreed loan terms: if there is a dispute, the verifier can arbitrate by verifying the arithmetic value NFT and proof of work, which then supports the transfer of funds to the executing party via the multi-signature address.