Economics for borrower

Borrowers are nICP holders who are earning 8 years ICP yield on 6months unlock and looking to unlock ICP liquidity during this period.

User Journey

A user deposits 10 nICP into the Sparkfi as collateral and borrows 6 ICP for 12 weeks. Borrower receives 5.88 ICP in loan (9% APY in fees for lender & protocol)

During the loan period, user continues to earn 8years yield on the 10 nICP. At any point during the loan, user can repay the 6 ICP and withdraw the 10nICP collateral. If not, at the end of 12 weeks, the protocol will automatically swap 10 nICP, repay the 6 ICP into the lending vault and return the rest to user.

Example of loan APY