Make Extension Offers
Loan extensions enable perpetual liquidity on the Arcade.xyz platform.
Users can make extensions offers on active loans on the Arcade.xyz Loan Marketplace. Extension offers must be in the same token type as the active loan (if the active loan is denominated in USDC, the extension offer must also be in USDC).
Key facts regarding loan extensions:
- Borrowers can extend loans with any lender that makes an extension offer on the platform.
- All active loans on the Arcade Loan Marketplace are open to extension offers by default.
- Loan extensions must be executed in the same token as the existing loan - for example, if the existing loan is in USDC - the extension must also be in USDC.
- Loan extension offer terms (Principal, Repayment, Interest Rate, Duration) are flexible - any or all terms can match or differ from the active loan.
- Borrowers must pay down the interest amount on the existing loan and any difference in principal amount between the existing and new loans to execute the extension - this amount is represented by the Due Now amount column on the offers table.
To make an extension offer, users should proceed through the below steps:
- Navigate to the Loans page to view all active loans on the Arcade Loan Marketplace. Select an active loan to make an extension offer on. Users can view details about the active loan, collateralized asset(s), and other information such as the valuations.
- Toggle to Make an Offer on the right side and input terms of offer - Principal, Duration, and Repayment Amount or APR.
Note: Extension offers should be in the same token type as the active loan.
- After terms have been entered and loan terms have been checked, users should click
Make An Offer. The dapp will immediately prompt for a signature from the user's connected wallet. A notification will appear in the app that the offer is being made.
Signature: Users must sign on their offer with their connected wallet with the Arcade Protocol's Origination Controller.
- Upon submitting a signature, a notification will appear in the app that the offer has been successfully submitted. Users can then view their offer on the active loan. The new extension offer will also be listed on the My Offers page.
Note: Users can also cancel the offer at any time by returning to the active loan, looking at the offers table and selecting
Cancel. A notification will appear in the app confirming the cancelation.
Updated about 1 month ago