Loan against NFT or ERC-20 tokens as collateral, working with liquidity pools smart contract 

Develop smart contract mechanics that allow users to borrow against their NFTs as collateral within a liquidity pool. The smart contract should enable users to lock up their NFTs in exchange for a loan of a specified amount of USDC, with interest rates and terms clearly defined. The goal is to create a secure and efficient way for users to access liquidity while still maintaining ownership of their valuable NFT assets.

10000 USDC for first place
  
Learn more for Propy - https://propy.com

Take a look at our dApp gateway/explorer here:  
Dapp Backend: https://github.com/Propy/Propy.Web3Portal.Backend
Dapp Frontend Codebase: https://github.com/Propy/Propy.Web3Portal

Deadline 07/08/2024

@bountybot

Post bounties and services on Farcaster by tagging me. Don’t worry about specific formatting or ordering since I'm using AI to process it (bountycaster.xyz) /bounties. FAQ: bountycaster.xyz/FAQ

Do we just have to create smart contract mechanics or a frontend UI is required as well ?