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

Read this article in 12 Minutes

NFTfi is a simple P2P marketplace for lending with NFTs as collateral.

What are NFTs used for? 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.

NFTfi Introduction

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.

The emergence of lending platforms like NFTfi will improve this situation.

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

The borrower can use any ERC-721 token as collateral, and other users can quote the NFT, if the borrower accepts the quote You can get a loan, and the mortgaged NFT will be locked in NFTfi's smart contract. 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 your favorite NFT. 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.

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

Tutorial

How to borrow

Open NFTfi official website:https://nftfi.com/

Click "Borrow"

then You can see the NFT assets currently owned;

After that, click on the NFT you want to use as collateral, and click "List as collateral (List as collateral)”;

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When other users accept the pledge and provide a loan, the border color of the NFT will change to blue color, click on the asset to accept the loan.

How to get a loan

Click "Lend"

You can then enter the collateral market , browse and choose your favorite NFT;

after Fill in the loan amount, repayment amount and loan term;

Just wait for the borrower to accept the quotation.

Risk Warning

(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, please be sure to confirm that the NFT can be maintained throughout the period its value. 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.