NFTfi: A platform to lend 25,000 US dollars with Mystery Cat as collateral

Editor's Note: This article comes fromBlock beats BlockBeats (ID: BlockBeats), reprinted by Odaily with authorization.

Editor's Note: This article comes from

Block beats BlockBeats (ID: BlockBeats)

Block beats BlockBeats (ID: BlockBeats)

, reprinted by Odaily with authorization.

What are the uses of NFT? At present, the most well-known ones are probably game props and encrypted art, followed by applications in insurance, domain names and other fields. In addition, is NFT, as a "token", used in the financial field?

In fact, NFT can already be used as collateral for lending services. Recently, an NFTfi user borrowed 25,000 DAI, about 42.3 ETH, with CryptoKitties No. 20 Genesis Cat as collateral.

Introduction to NFTfi

The liquidity of the art and collectibles market is generally lower than that of fiat currency, stocks or other types of assets. The same is true for NFTs, and it often takes a long time to match sellers and buyers. New projects in the encryption field are emerging one after another, but there are many users whose assets are stored in the wallet in the form of NFT, which may cause them to miss one hundred times coin after another or sell NFT at an extremely low price in exchange for liquid cash.

NFTfi is a simple P2P marketplace for lending with NFTs as collateral. It allows borrowers to take out NFT assets for loans, and lenders can provide loans in exchange for interest.

tutorial

Borrowers can use any ERC-721 token as collateral, and other users can quote the NFT. If the borrower accepts the offer, they can get a loan, and the mortgaged NFT will be locked in the smart contract of NFTfi. After the borrower repays the loan, the NFT will be transferred back to the borrower, and if the loan is not repaid by the due date, the NFT will be transferred to the lender.

Lenders can browse NFTs they are interested in on the NFTfi platform, such as "Gods Unchained", "Decentraland", "Cryptovoxels", "Cryptokitties", etc., and provide loans to their favorite NFTs. If the borrower defaults, the lender will get the mortgaged NFT; and if the borrower pays off the loan, the lender can get interest income.https://nftfi.com/

Currently, NFTfi does not charge the borrower a handling fee, but charges the lender 5% of the interest income as a handling fee; no fee will be charged if the mortgage is canceled or the offer is not accepted.

tutorial

how to borrow

Open NFTfi official website:

Click "Borrow"

Then you can see the NFT assets you currently own;

Then click on the NFT you want to use as collateral, and click "List as collateral";

When other users accept the mortgage and provide a loan, the border color of the NFT will change to blue, and the loan can be accepted after clicking on the asset.

Click "Lend"

risk warning

Then you can enter the collateral market, browse and choose your favorite NFT;

Then fill in the loan amount, repayment amount and loan term;

risk warning

team

(1) Don't lend too much money that is much higher than the value of NFT, because the borrower may directly choose to foreclose.

(2) If the lender chooses a longer repayment period, be sure to confirm that the NFT can maintain its value throughout the period. Many newly launched projects have strong liquidity and seem to be valuable, but many will die shortly after the boom.

(3) When accepting the quotation, the borrower should pay attention to the annual interest rate of the loan and make a comparative choice.

team

Stephen Young, CEO, Founder

Token engineer, former Coindirect product director, Allen Gray digital marketing director.