X2Y2 is an NFT Marketplace platform on Ethereum that allows users to trade, buy or sell NFTs at cheap fees. In addition, X2Y2 also implemented X2Y2 Fi which is an NFT Lending platform that allows users to use NFTs as collateral to borrow an amount of ETH and lenders can earn passive income with their deposits. Recently, X2Y2 continued to introduce ERC 20 Lending integrated directly into X2Y2 Fi. So what’s special about X2Y2 Fi and ERC 20 Lending? Let’s find out with Weakhand in this article.
Before jumping into the article, everyone can refer to some of the following articles to better understand
- What is X2Y2? Overview of X2Y2 cryptocurrency
- What is NFT Marketplace? Delivery mechanism and some prominent NFT Marketplaces
- NFT Lending: Models, Efficiencies & Opportunities
- What is Blend? Perpetual Lending Protocol for NFTs
What is X2Y2?
X2Y2 is an NFT Marketplace platform deployed on Ethereum that allows users to buy, sell, and trade NFTs with cheap fees. X2Y2 was founded in February 2022 and has so far achieved a total trading volume of 10B USD. X2Y2’s goal is to provide an accessible and user-friendly platform that makes it possible for anyone to create, trade, and manage NFTs. The platform offers features like customizable templates for creating NFTs, an NFT marketplace to buy and sell NFTs, and tools to manage NFT collections.
What is X2Y2?
Introducing X2Y2 Fi
X2Y2 Fi was launched in September 2022 and is currently becoming one of the largest NFT Lending platforms on the market. X2Y2 Fi provides fast, efficient and low-cost borrowing/lending services to maximize liquidity for NFTs. X2Y2 implements a P2P Lending model that allows rare NFTs to obtain larger loans, below is the operating model of X2Y2 Fi:
Step 1: Borrowers deposit their NFTs on the platform and set loan conditions such as: Amount of WETH they want to borrow, loan period. After completing the terms, the loan will be displayed on the platform.
Step 2: Lenders search for suitable loans on the platform. They can view the borrower’s terms, loan offers as well as the NFT’s transaction history to better assess the value of the loans.
Lenders can view loan data before deciding to lend
Lenders can initiate lending by clicking “Make Pinpoint Offer” and provide loan terms such as: Loan amount, Daily APR, loan period, size, loan period. Once completed the lender can view their position in the Offers section. They can update the terms of the loan to get a higher rating, making it easy for borrowers to view their offers at any time.
Step 3: Borrowers agree to the Offer that best suits them and proceed to borrow money through X2Y2.
Step 4: If the borrower wants to continue borrowing WETH before the loan contract expires, they can apply for an extension. It is worth noting that the new loan is not a renewal of the terms in the original loan but rather a replacement with new terms from the new lender. The WETH obtained from the new lender will be used to repay the original lender, thus extending the loan period and creating an opportunity to receive better conditions and interest rates. This can help users reduce their burden, save on interest costs or change the repayment term.
Sale: If the loan period expires and the borrower does not repay the loan, their NFT will be liquidated and transferred to the lender.
In addition, X2Y2 also implements the feature NFT Protection helps protect borrowers’ NFTs from loss due to forgetfulness or other reasons that prevent timely repayment. Borrowers can choose to enable the NFT Protection feature, which will automatically accept an extension offer 1 hour before the due date and pay 0.05 WETH to the lender who extended the protection upon repaying the loan.
X2Y2’s Innovation Is Named ERC 20 Lending
Recently, X2Y2 announced the launch of ERC 20 Lending to address the needs of meme coin holders, where major lending platforms in the market do not support borrowing or lending against popular meme tokens like $PEPE and $SHIB. By allowing these holders to convert their altcoins into NFTs and use them as collateral to borrow, the X2Fi ERC 20 loan fills an important gap and provides a viable lending solution for those Holds Meme tokens.
The ERC 20 Lending process goes as follows:
Borrowing process with ERC 20 Lending
- Users connect their wallet to the X2Y2 Fi platform and choose “MINT”, the system will recommend 4 different NFTs based on the number of Meme tokens. Users select the NFT that matches the amount of Meme tokens available and proceed to mint the NFT.
- After minting the NFT successfully, users can switch to Tab “BORROW” and start the loan process.
- Similar to other NFTs, users can use this NFT as collateral to borrow a certain amount of USDC.
- Users can return the loan at any time before the expiration date to receive the collateral NFTs back. The user can then go to the tab “PORTFOLIO” and perform Withdrawn to receive back the corresponding amount of Meme tokens.
summary
Overall, ERC 20 Lending is a unique product of X2Y2 when targeting customers who hold Meme tokens, which are considered tokens that do not have many use cases except for speculation and waiting for price increases. . Above is all I want to introduce about X2Y2’s ERC 20 Lending. I hope everyone has received useful knowledge.
