Strip Finance aims to be a decentralized finance (DeFi) and NFT protocol that provides a secured marketplace to digital asset traders and eases liquidity. With the growth of the NFT market, the website says that the token aims to provide a tool for collateralizing NFTs and supply liquidity to bring more value to the digital asset class. Strip Finance plans to promote capital deployment to support risk and financially back NFTs (by accepting them as collateral for any loan) to obtain legality and clarity in the cryptocurrency world.
According to the whitepaper, Strip Finance is aiming to make a core piece of architecture (capital market) to promote the development and endorsement of the asset class. The Strip platform actively seeks (with the partner's help) NFTs, both financial and art-based, to draw a more expansive gathering of traders who are interested in trading the pieces.
When there is a drop in NFT prices to such an extent that the fall crosses the risk verge, indicating a further value reduction might lead to a price less than the loan value, the borrower comes to the front to extend the leverage function to avoid liquidation. Moreover, the process is executed with extra leverage by delivering STRIP tokens of the leverage value.
The token functions as a utility token of its native platform, which can be utilized to pay fees for profiting different platform services. Other platforms include, and which are not restricted to, commission income, borrower price, lender's interest, liquidity fine, etc.
Implementing project management adds more transparency and faith to the platform. With the help of a decentralized procedure, STRIP tokens operate every vital decision on the platform, such as updates, burn schedule, airdrops, developer and community contributions, etc. This ultimately paves the way for more community involvement as users submit and vote.
With the help of P2P and pool lending, the platform aims to incentivize participants to boost liquidity on the platform. In pool lending, liquidity pools are created to invite more participation from time to time. LP tokens program is used to incentivize the involvement of users who own a portion of the liquidity pool that can be used to empty the crypto tokens from a liquidity pool at any point in time.
