# What is NiftyApes?

## The Basics

**NiftyApes** is a system of smart contracts that enables NFT owners to access instant liquidity using the NFTs they own as collateral.

The **NiftyApes** smart contracts are flexible, and allow lenders to create loan offers with any combination of Principal (e.g. amount offered), Duration, and APR. 

Automatic, always-on loan auctions drive towards fair market values of the assets along a risk-adjusted timeline.

Lending via the **NiftyApes** smart contracts is designed to be a win-win-win game. 

* **Borrower's Win** by having access to instant liquidity and competition for their loan over the loan's lifespan. 
* **Lenders Win** by enabling an infinite number of standing offers and accessible liquidity with minimal opportunity cost or fragmentation. Additionally, the protocol guarantees minimum profitability and originator premiums for the lenders who do the work of locking liquidity, extending open offers, and identifying a market price. 
* **The Ecosystem Wins** with pricing data. As the NiftyApes offer-book fills up, a risk-adjusted pricing model emerges for all served assets. This data is on-chain and accessible by everyone. Additionally, **NiftyApes** has committed to programmatically donating 1% of protocol fees to the Regen Collective, which funnels capital to regen and public good projects in the ecosystem.

We're making debt a public good, enabling both borrowers and lenders to benefit from market competition.

{% embed url="<https://discord.gg/Ge8Zwy6syQ>" %}

## Why do lenders care?

Lenders can create an infinite number of lending offers, for an infinite number of assets in 2 clicks with **zero liquidity fragmentation.**

Plus, **NiftyApes** is building on top of [Compound](https://compound.finance), meaning that even when your liquidity isn't earning interest in active loans, you're still earning an industry-standard APR.

{% content-ref url="lenders-dapp-guide" %}
[lenders-dapp-guide](https://docs.niftyapes.money/lenders-dapp-guide)
{% endcontent-ref %}

## Why do borrowers care?

Borrowers get access to instant liquidity to borrow, using their NFTs as collateral with as few as **1 transaction.**

**Flexibility is the ultimate luxury:** these loans auto-upgrade over the entire lifetime of the loan, but borrowers can also refinance without friction or fees!&#x20;

{% content-ref url="borrowers-dapp-guide" %}
[borrowers-dapp-guide](https://docs.niftyapes.money/borrowers-dapp-guide)
{% endcontent-ref %}