What is NFTfi? NFTfi is a decentralized lending platform on Ethereum that allows users to use their NFTs as collateral to borrow wETH, DAI or USDC. Let’s find out what is special about this project with Weakhand in this article.
Before jumping into the article, you can refer to some of the following projects to understand more
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What is NFTfi?
NFTfi is a peer-to-peer lending platform that enables the use of NFTs as collateral to borrow cryptocurrency – safely, securely and anonymously. NFT holders can borrow wETH, USDC, and DAI by mortgaging their NFTs in exchange for loans provided by lenders.
Simply put, NFTfi is the intermediary platform that connects the Walker
get a loan and lender with the Terms are decided by both parties.
Main components participating on NFTfi:
- Borrowers (Borrowers): Collateralize your NFT and set the desired loan terms to borrow an amount of tokens (wETH, DAI, USDC).
- Lenders (Lenders): Agree on terms, transfer money to the borrower and receive interest.
Up to now, NFTfi has also partly affirmed its position by reaching a loan volume of up to $340M with more than 31,000 loans, the volume of loans and loans is also growing strongly during this period. recently. Everyone can check detailed information at Dune.
NFT Finance is a fairly new field but also full of potential. Everyone can read the following article to understand better.
NFTfi Operating Model
1. Borrowers provide NFTs to the NFTfi platform as collateral to be able to borrow a certain amount of money.
2. Lenders search and review available NFT collateral on the platform. Additionally, they can make loan offers to borrowers.
3. Borrowers will be notified as soon as they receive a loan offer on their NFT. If borrowers receive multiple loan offers, they can select a suitable offer from the list.
4. Upon accepting the loan offer, the borrower will trigger a transaction to create a new loan contract, send the NFT to the NFTfi escrow smart contract, receive the loan amount from the lender to his wallet . Because these things happen simultaneously in a single transaction, there is no risk that the NFT will be sent to escrow without the borrower receiving the funds.
5. When the contract expires, the borrower will repay the money + interest to the lender and receive his NFT back.
The NFTfi platform will not have automatic liquidations. If the borrower has not repaid the loan by the loan maturity date, the lender can claim the NFT and its ownership will be transferred to the lender.
What is the Difference of NFTfi?
NFTfi does not charge any fees when users use services on the platform. In addition, the two parties can renegotiate the loan contract during the ongoing contract process.
Borrowers can bundle multiple NFTs into one loan. Lenders can use these Private offer to potential borrowers of the properties not publicly listed.
Core Team
Update…
Investor
November 6, 2021: NFTfi already Announcement of successful call for $5M led by 1k(x).
Tokenomics
Update…
NFTfi Project Information Channel
- Website: https://nftfi.com/
- Twitter: https://twitter.com/nftfi
- Discord:
summary
The NFT lending market is a new wind blowing into the Crypto market. NFtfi is making NFTs more functional and useful. Hope the above article has helped you understand somewhat What is NFTfi?