Learn about Rocket NFT, a lending platform that mortgages NFT in five minutes
Editor's Note: This article comes fromChain News ChainNews (ID: chainnewscom), Written by LeftOfCenter, published with permission.
Editor's Note: This article comes from
Chain News ChainNews (ID: chainnewscom)
, Written by LeftOfCenter, published with permission.
Rocket NFTHolding NFT assets now has a new way of playing: through a new project called "Rocket NFT", NFT assets can be mortgaged back to stablecoins.
This is somewhat similar to ETH mortgage lending: through Maker, we can mortgage Ethereum to lend DAI, and get the opportunity to do long ETH with leverage. The emergence of Rocket NFT has added a DeFi use case, allowing us to mortgage NFT and obtain a loan denominated in DAI.secondary titleWhat exactly are Rocket NFTs?
Because the value of NFT is more difficult to assess, in the early stage Rocket NFT adopted an application system and due diligence to ensure that the loan was allocated to a trustworthy person. If you want a loan, the lender can fill in the
ENS domain name
Application Form Apply for a Loan
, and answer the related questions.
So far, valuable NFTs include:
ENS domain name
Mintbase event tickets
SuperRare and Known Origin Crypto Art
Cryptovoxels and virtual land on the Decentraland platform
Collectibles issued by the digital collectibles trading market Spider DEX
Axie Infinity in-game item (Small Love Potions or Axies)In the future, an NFT framework will be provided to automate the process to determine the value of NFT.So far, the platform has passed multiple loan proposals.
Among them, John M. lent 2,000 DAI for the first effective loan, mortgaged a virtual real estate worth 5,000 US dollars on Decentraland, with an annualized interest rate of 14%, a loan period of 6 months, and a repayment frequency of 3 every 60 days Second-rate.Above is a piece created by artist Josie Bellini
, the work was mortgaged on Rocket NFT by RENE SCHMIDT, the co-founder of the VR blockchain solution Qwellcode GmbH, and lent 1,000 DAI with a term of 6 months and an interest of 15%. Mortgage loans.
A recent larger NFT loan
Also based on the Decentraland platform, virtual real estate worth 100,000 US dollars is mortgaged, and a loan of 20,000 DAI is issued, with a 6-month deposit period and an annualized rate of 12%.
It can be seen that the above annualized rates are higher than the Dai Savings Rate (DSR), and higher than the deposit interest on lending platforms such as Compound. Unlike lending platforms such as Maker and Compound, which target assets with a clear market value, NFT, as a type of collateral, is more difficult to assess its price, and its inherent risks are relatively vague. Therefore, lenders take on higher risks and enjoy higher interest.
Is it safe and reliable?
As an asset type, NFT has high speculative attributes, which means that for borrowers (that is, holders), they believe that the assets they hold have the potential to appreciate in the future, so they will think To obtain cash flow by borrowing DAI as collateral, this is similar to lending DAI based on Maker Vault mortgage ETH for long ETH. In essence, they all think that their collateral has long-term appreciation value, so in a certain To some extent, borrowers wish to redeem their collateral.
NFTs, on the other hand, have sentimental value for creators. When someone mortgages his cherished digital collection to obtain a small loan, he hopes to get the collateral back as soon as possible after a period of time.
In the event of default, Rocket DAO can auction off mortgaged NFT assets on NFT secondary markets such as OpenSea and Nifty Gateway to make up for losses.
Who created the Rocket NFT?hereRocket NFT was initiated by Alex Masmejean. Alex Masmejean is a young blockchain evangelist. To be precise, he is keen on researching DeFi low mortgage rate lending, and has been working on the coordination and promotion of decentralized autonomous organizations. He is currently Core contributor to MetaCartel DAO, Marketing DAO and Secret SanDAO.
Rocket NFT originated from an online discussion and survey on the theme of DeFi with a low mortgage rate. At that time, Alex Masmejean was surprised to find that many people had the need to mortgage NFT to obtain loans. So I started to try and build an NFT bank Rocket NFT.
