Buy and Bid with Credit

What is Buy with Credit?

Within the Parallel shop page, you can use the credits generated from Parallel to instantly buy NFTs that are listed on the highest volume marketplaces, OpenSea and LooksRare. By supplying assets to Parallel you can increase your available credits and buying potential. To purchase an NFT, input the amount of wallet balance and amount of credits you wish to use to meet the 'buy now price'. The Parallel protocol will interact directly with the marketplace contracts to purchase the NFT. As a result of the buy with credit transaction, the purchased NFT will be supplied and collateralized in Parallel and you will receive the corresponding nToken.

What is Bid with Credit?

You can also use your credits to send buy offers to any NFT that is supplied within the Parallel protocol. You can view and edit your bid offer within the Offers page. Holders of the corresponding nToken can accept your bid as long as it does not result in the buyer or holder's health factor falling below 1. Once the bid is accepted, the funds are transferred from the bidder to the nToken holder's account and the bidder receives the nToken of the NFT.

How are my available credits calculated?

The available credits you have to buy or bid on an NFT is equal to the amount of credit you currently have from your existing collateralized positions as well as the future credit you would if you were to purchase the NFT. The future credit is equal to LTV * Floor Price of the NFT you are purchasing. You can increase your current credits by supplying and collateralizing NFTs and ERC-20s within Parallel.

Why would I buy / bid with credit?

Using credit to purchase NFTs can help you achieve more capital efficiency in your trading activities. For example, you may need to sell one NFT to buy another higher priced NFT but by supplying your NFTs, you don't have to sell and can secure the higher priced NFT. You may choose to repay the credit to withdraw the NFT you purchased. You can also list the NFT on Parallel within the Offers page. All listed NFTs on Parallel will be available for discovery on the main Parallel shop page for Buy with Credit.