FAQ
Rain.fi is the first fully decentralized, P2P liquidity protocol for NFTs, giving users the ability to lend SOL/USDC/MSOL and finance mortgages.
As a project, you can create a pool with SOL that you can integrate on your website to lend SOL to your users.
Visit docs.rain.fi for more information!
As a user, Rain can help you borrow SOL easily using your NFT as collateral.
How does borrowing work?
Borrow SOL or USDC using your NFTs as collateral. During the loan period, your NFTs will be locked in your wallet, enabling you to continue receiving airdrops, maintaining DAO access, and qualifying for snapshots. Early repayment of the loan is rewarded with a cheaper interest rate, and non-repayment will lead to liquidation.
I forgot to repay my loan
The grace period for loans is equivalent to 1 hour per day borrowed, up to a maximum of 8 hours, after which the lender will be able to claim your NFT.
Do I keep my NFT during the loan?
NFTs stay locked in your wallet until loan repayment, which means you can’t interact with it during loan but can still enjoy DAO access, airdrops, and snapshots.
I can't borrow any money
In the rare case that your NFTs are not live on Rain yet, feel free to submit a request and we’ll get the collections listed right away!
How is the price of my NFT calculated?
We use our own oracle to store and update every supported collections floor on-chain. We then use this to calculate the amount of SOL/USDC you can borrow based on the loan-to-value set by the lender.
Is there a grace period
Currently, the grace period for loans is equivalent to 1 hour per day borrowed, up to a maximum of 8 hours.
What is the minimum and maximum amount I can use?
The minimum amount to borrow is 1$ and there is no maximum amount.
Does Rainfi support liquid staking tokens?
Yes, it is currently possible to use MSOL and JitoSOL in our platform. More options will be added in the future.
When would I receive the amount of Droplets?
The amount of Droplets will appear to you a few moments after the loan terms end.
Will the borrower get liquidated on price fluctuations?
No, not for now, this option will be added in the future.
Are there penalties for defaulting on a loan, and what are the penalties for defaulters?
Not yet, but soon, defaulting a loan will cost you a certain percentage of the dropplets earned.
How liquidations are handled?
For NFT loans, if you fail to repay on time, the NFT will be transferred directly to the lender’s wallet. For token loans, by default, the collateral amount will be swapped via Jupiter, and the amount will be returned to your pool with a 2% fee on the swapped amount. You can disable this feature by turning off ’Compound interest’ in your pool settings.
How does lending work?
Rain allows lenders to create their own pools and act as their own ”bank” by presetting loan terms such as LTV, accepted collections, loan length, and interest rate. This results in increased efficiency as lenders don’t have to manually lend funds or calculate loan-to-value and research floor prices. Loans are automatically accepted or rejected based on preset terms, and lenders only need to manage their pools when they want to close or optimize them.
What if the borrower doesn’t repay their loan?
If after the grace period, it hasn’t been repaid, the borrower’s NFT will go straight into your wallet.
I want to integrate Rain on my dApp
We have a plug-and-play package! You can find our SDK here: https://www.npmjs.com/package/@rainfi/sdk
What are your fees?
We take a 15% upfront platform fee out of the interest paid from the borrower for NFT loans, and 20% for Tokens loans and Mortgages, and 5% fee out of the interest the pool makes when the borrower repays his loan. For each loan took using tokens as collateral, around 1-2$ are used to pay for Metaplex fees and token account creation fees.
Can I pay my loan in advance
Yes, the earlier, the cheaper your interest will get. Loans can be paid back early with a minimum of 30% of total interest.
Is it possible to add multiple currencies to a single pool??
No, as of right now, only one pool can be created per user because of architechture design in our program, but we are working to make it possible.
Does the duration of my loan affect my Droplets count?
No, only the amount borrowed/lent affect the droplets, it might chnage in the future.
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