CastleDAO will be offering $MAGIC borrowing against different sets of collections, but starting with Smol Brains, due to their high liquidity and demand.
Users will be able to stake their Smol Brains, and borrow different amounts of $MAGIC against them. At the same time, borrowers will earn rewards in RUBY (CastleDAO native token) that can be used for in-game purchases or starting battles.
The interest rates charged on the borrowing will be simple 10%/20% per year, not compounded. The final interest rates will be decided on launch.
Borrowing $MAGIC will allow SmolBrain holders to leverage their exposure to $MAGIC and be able to participate in other activities without having to dispose of their Smol.\
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In version 2 of the lending protocol CastleDAO will allow users to also lend $MAGIC to the market.
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