How Pawn Works

Borrow WQOM against your NFT, or earn yield lending to NFT holders. Everything is P2P on-chain — no middleman sets rates, no pools, just direct borrower ↔ lender matching.

Current settings (live from chain)

Origination fee

max 2%

Interest fee

max 10%

Grace period

—

max 7d

Min loan

0 WQOM

per offer

If you want to borrow

List your NFT

Go to List NFT, pick any NFT from your wallet, set how much WQOM you want, the interest % you'll pay, and how long you need it. Free — no gas, no signature. Your NFT stays in your wallet at this point.

Wait for offers

Lenders browse your listing and sign offers (no gas for them either — just a signature). Each offer specifies their terms: loan amount, repayment total, duration. You see all offers on your listing page.

Accept the best offer

Pick an offer → click Approve NFT #X & Accept offer. The button auto-runs two transactions for you: (1) approve this specific NFT to the lending contract — narrow scope, your other NFTs aren't touched, and (2) the accept tx itself, which moves your NFT to escrow and sends the lender's WQOM straight to your wallet.

Repay to get your NFT back

Before the deadline, go to My Loans and click Repay. If you don't have enough WQOM, the page shows a Wrap helper to convert native QOM first, then an Approve step (one-time, max — covers all your future repayments), then Repay. The repayment amount is fixed at origination — no daily accrual, no surprises. Your NFT comes back in the same tx.

Miss the deadline → lender keeps the NFT

If you don't repay before duration + grace period (currently — grace), the lender can liquidate and take the NFT. You keep the WQOM principal you already received (so this is only a problem if the NFT is worth more than the loan).

If you want to lend

Browse listings

Go to Browse → pick a listing whose NFT + terms you're comfortable with. Or scan "Open lend offers" (what other lenders are offering) to see market rates.

Lend in one click — Wrap → Approve → Sign

Open a listing → enter your terms (or use the borrower's defaults) → click Lend. The button shows you up-front exactly how many wallet prompts you'll see and runs them in sequence:

Wrap native QOM → WQOM (only if your WQOM balance is short)
Approve WQOM to the lending contract (one-time, max — covers all your future offers; only if you haven't already)
Sign the offer — this is just a signature, not a transaction. No gas, no WQOM moves yet.

A returning lender with WQOM + an existing approval sees only the signature prompt. Cancel any open offer from My Loans any time before the borrower accepts.

Wait for borrower to accept

When the borrower accepts your offer, the contract pulls the WQOM from you and gives you a claim on the NFT. The active loan appears on My Loans.

Collect repayment — or liquidate

If the borrower repays before the deadline, you automatically receive principal + interest (minus the lender-side interest fee, if any). If they miss the deadline, you can call Liquidate to take the NFT instead.

Collection-wide offers (advanced)

Instead of targeting a specific tokenId, you can post a collection-wide offer that any holder of any token in that collection can accept. Best for generative art where all tokens are roughly equivalent — risky for PFP / trait-based collections where the floor holders are the ones most likely to take the loan. Always price for the collection's floor, not its average.

Where to find offers

Three entry points, all show the same underlying offers:

/pawn — top-level feed with filters for collection, type, APR range, and principal range. Accept any offer directly from the card.
/pawn/listing/[id] — offers attached to a specific borrower's listing, including collection-wide offers that match.
/pawn/lend — for creating a new lend offer without browsing listings first — useful if you want to underwrite a collection generally.

Collection-wide offers float across all three views — wherever a borrower with a matching NFT lands, they can accept. Read more in the docs →

Key properties

Fixed repayment, no daily accrual. Interest is locked at origination; borrower pays the same amount whether they repay day 1 or day 29.
Signed offers cost nothing. Lenders can have dozens of open offers across many listings. Only the first-accepted one uses WQOM.
Repayment can come from any wallet. Anyone holding WQOM can call repay on a borrower's behalf — useful if the borrower's hot wallet is empty, the borrower is a multisig, or a friend/treasury is bailing them out. The NFT always returns to the original borrower address, not the payer.
Lender never forced to liquidate. After default, lender can wait as long as they want. Borrower can still repay anytime before liquidation.

Fees

Two independent fees, both set by admin and both hardcoded with maximums so they can't be raised arbitrarily. Either can be zero. Both are snapshotted per-loan at origination, so whatever rate was live when your loan opened stays locked on your loan.

Origination fee (borrower side). A small % of the principal, deducted from what the lender sends before the borrower receives it. Currently 0%; hardcoded max 2%. The borrower sees "net received = principal − origination fee" clearly in the UI before accepting. Paid whether the loan repays or defaults.
Interest fee (lender side). A % of the interest (not the principal), taken from the lender's payout at repay time. Currently 0%; hardcoded max 10%. Borrower pays the same repayment regardless; lender receives repayment − interest fee. Only paid on successful repayment — if the loan defaults and gets liquidated, no interest fee is taken.

What you need before starting

Wallet with QOM for gas (any small amount works)
Borrower: an ERC-721 NFT in the wallet
Lender: WQOM equal to the principal you want to lend — or just native QOM, the Lend button auto-wraps for you in the same flow
Everything connects via the wallet button in the top-right — MetaMask or WalletConnect

Off-chain negotiation (optional)

Borrowers can attach a Telegram handle when listing; lenders can attach one when signing an offer. Either side can DM the other to negotiate terms before anyone commits. Handles are optional — leave blank if you'd rather stay anonymous. Telegram messaging happens entirely off-chain — the protocol doesn't see it.