At OpenSky, we aim to build an advanced smart contract blockchain platform at the nexus of DeFi and NFT that will empower anyone with an Internet connection to trade, stake, borrow and lend unique digital assets in a secure, trustless, and permissionless manner. In a nutshell, we are a DeFi x NFT protocol that enables NFT stakers to value their NFTs and borrow against them on demand while maintaining control and exposure to further upside.
We are delighted to announce the launch of OpenSky Testnet and welcome NFT enthusiasts to give it a try and be rewarded with future airdrops of our governance token, OST.
Please follow the step-by-step instructions to get started with staking, marketing, and borrowing on our testnet platform. We appreciate your feedback and you can connect with us on our Telegram group, follow us on Twitter, and email us anytime.
1. Connect MetaMask wallet to your OpenSky testnet account
Download MetaMask Wallet as a Google Chrome plugin here: https://metamask.io/download.html and set it to the Rinkeby testnet
2. Get your test ETH
To get your test ETH, click on the Rinkeby Authenticated Faucet link on on the left.
Click the blue “Tweet” button at the bottom of the Rinkeby Authenticated Faucet page.
You will be redirected to Twitter and a dialog box will appear.
Copy your MetaMask wallet address into the dialog box.
Click “Tweet” to send.
Copy the Twitter link to the Rinkeby Authenticated Faucet website and select the amount of ETH you need.
The test ETH should now be in your MetaMask wallet.
3. Get your test NFT
To get your test NFT via Telegram click the “OpenSky Telegram” link.
Click ‘Give me my test NFT’, the NFT link will be created.
Copy the generated link and send it to OpenSky Labs.
The chatbot will confirm whether the NFT acquisition was successful.
Note, if the chatbot only replies once, please repeat the request again.
If the operation is successful, you will see the test NFT in your OpenSky account after a few minutes.
4. Create a new OpenSky Market with your test NFT
You should see your Test NFT when you click on the Account tab.
Click the Stake button to establish a new Market.
Choose a name for your NFT Market (Stable Market is the only Market type available now).
Click Approve, you also need to confirm this in your MetaMask wallet.
After MetaMask confirmation, click the Stake button.
NFT stakers will earn 5% of all subsequent transactions as a trading fee.
5. Redeem your NFT
Click the Locked tab.
Click Redeem and you will be charged 1% of the market cap as the redemption fee.
You will now see the unlocked NFT on the Available tab.
6. oToken trades
On the Market page, you should see your newly-created NFT Market.
Click on the Trade button and enter the quantity of oTokens you would like to buy.
If you already own this oToken, you can also click the sell button to sell some or all of your oTokens.
NFT staker’s borrowing will affect the number of oTokens that can be sold.
Buy and sell trades will increase the Volume (24H). Buy transactions will increase the Market Cap, and sales will decrease the Market Cap.
It should be noted that both buy and sell transactions have a 1% transaction fee, and NFT stakers earn 5% of the generated transaction fees.
7. oToken Income
The income generated after purchasing oTokens can be withdrawn by clicking the Claim button.
The income includes oToken trading fees and NFT loan interest.
After the NFT staker redeems the NFT, you can click the Withdraw button to withdraw your capital.
8. Borrowing against your NFT
Assuming an active NFT Market has generated a market value for your NFT, you will see the eligible NFT markets in the Borrow tab.
Click the Borrow button to borrow ETH against your NFT collateral.
The loan amount depends on the Market Cap of your staked NFT.
Borrowing is only possible after a Market Cap has been created for your NFT Market.
After the Market Cap is generated by buying and selling activity, the maximum borrow limit is 50% of the Market Cap, and you can borrow on-demand up to your limit.
You can partially or fully repay your loan at any time by clicking the Repay button and entering the desired payment amount.
Total Borrow Limit is the maximum amount that can be borrowed.
Total Borrow Balance is the outstanding balance.
Annual Percentage Rate (APR) is calculated by algorithm and measures the cost of the loan.
9. Liquidation function
oToken trades after the Market is created will cause continuous changes in the Market Cap via the minting and burning process.
When NFT’s Market Cap<Total Borrow balance (1+10%), the liquidation mechanism will be triggered and move the NFT into a Settlement Pool.
Initially, OpenSky will give the NFT staker six hours to either restore the account to a healthy condition by partial repayment or to redeem the NFT by full payment of the outstanding principal and interest.
If the NFT staker has not taken action (Repay) within the 6-hour time window, the NFT will officially enter the liquidation pool, and the repayment can be made by any trader on a first come-first served basis. The trader who pays the outstanding loan off will receive the unlocked NFT and the NFT Market will be terminated.
After the Liquidation process is triggered, the first trader who fully repays the outstanding balance will receive the unlocked NFT. The current NFT staker can retain ownership of the NFT by clicking the Liquidate button and paying off the required amount before anyone else.
Liquidation is on a first come-first served basis and may result in change of ownership of the staked NFT that is in liquidation.