Introduction & Features


Tetu Pawnshop is a decentralized marketplace designed for transaction between lenders and borrowers using tokens and non-fungible tokens (NFTs) as collateral. Currently, it supports only ERC-721 and ERC-20 tokens. Apart from loan services, it also offers conventional marketplace functionalities such as buy/sell and auctions.

Key Features

Tetu Pawnshop's operations primarily revolve around four key fields that need to be filled out:

  1. Item for Sale/Collateral

  2. Set Price/Minimum Price

  3. Set Loan Duration

  4. Set Fee

The type of transaction that will be carried out (Sell, Auction, Loan Auction, Loan) depends on the information provided in these fields.

Sell Position

The Sell position allows users to list an item for sale at a specified price. Once the position is opened, it is available for others to purchase. If the seller changes their mind, they have the ability to close the position, provided it has not been sold yet.

Loan Position

The Loan position allows users to use their assets as collateral to get a loan. This involves more steps than the Sell position. To set up a loan, the user must:

  1. Choose the collateral

  2. Set the amount they wish to borrow against the collateral (price)

  3. Specify the loan duration

  4. Set the fee

Once the loan position is open, other users can lend the specified amount. If the borrower decides not to go ahead with the loan, they can close the position. After the loan is issued, a timer starts counting down the loan duration. If the loan is not repaid with the fee before the timer runs out, the lender can claim the collateral. However, if the lender has not claimed the collateral after the timer runs out, the borrower can still repay the loan and get their collateral back.


Tetu Pawnshop supports two types of auctions: Sale Auctions and Loan Auctions.

Sale Auction

In a Sale Auction, the user specifies the item they want to sell and a minimum price (optional). Once the auction is open, other users can place bids on the item. The auction lasts 24 hours from the placement of the first bid, and each new bid extends the auction by another 24 hours. The minimum increase for each subsequent bid is 10% of the previous bid.

Loan Auction

A Loan Auction operates similarly to a Sale Auction, but the result is a loan rather than a sale. Users must specify the collateral, minimum price (optional), loan duration, and fee.

In both types of auctions, the auction owner can close the auction as long as no bids have been placed. However, once a bid is placed, the auction cannot be closed unless all bidders withdraw their bids.


In auction participation, bidders must ensure they have the required bid amount in their wallets as bids lacking sufficient funds won’t be registered. A participant can only have one active bid at a time and must withdraw an existing bid before placing a new one. It’s important to note that the last bidder is bound to the auction and cannot withdraw their bid until the auction concludes or when a higher bid is placed. The auction is considered closed once the auction timer runs out. To finalize the transaction, the deal owner has a period of two weeks to accept the final bid, otherwise the last bidder can withdraw their bid, thereby re-opening the auction for another 24 hours (or no predetermined duration if no further bids are placed) and the auction will be opened again.

Post-Auction Procedures

If the deal owner accepts the bid:

  1. For Sale Auctions: The item is transferred to the winning bidder.

  2. For Loan Auctions: The Loan Duration timer starts. The borrower can repay the loan with the fee before the timer ends. If the timer ends and the lender hasn’t claimed the collateral, the borrower still has the opportunity to repay the loan and reclaim their collateral. However, if the lender decides to claim the collateral after the Loan Duration timer ends, the borrower loses their right to repay the loan and reclaim their collateral.

The Tetu Pawnshop thus provides a dynamic, versatile, and secure platform for users to trade, lend, and borrow using both fungible and non-fungible tokens. By supporting multiple types of transactions and offering user-defined parameters, it allows for flexibility and caters to a wide range of financial needs in the Polygon ecosystem.


When opening a position in the pawnshop, users are required to deposit 100 TETU. This deposit is returned upon the closing of the position or when the deal is concluded. As a result, users should ensure they maintain an adequate TETU balance prior to initiating a position. Additionally, a fee of 1% is charged on the total value of each deal. Both the 100 TETU deposit and the 1% fee are set by the contract and may be modified in the future.

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