What Is NFTFi?
NFTfi is a peer-to-peer, decentralized lending protocol allowing users to take out loans that are collateralized by their NFTs. It is focused on building a fully decentralized, permissionless, user-owned public utility to support the financialization of NFT-based economies.
Background
NFTfi was the first protocol to offer NFT-backed loans via a peer-to-peer lending model, beginning in June 2020. It supports many top NFT collections, including Bored Ape Yacht Club, Mutant Ape Yacht Club, CryptoPunks, Doodles, Art Blocks Curated, and more.
How Does It Work?
Borrowers can list NFTs they want to borrow against, and lenders bid on these listings by offering loan terms, including loan amount, duration, and interest rate. All loans have fixed terms without price-based liquidation. For lenders, NFTfi provides a platform for generating attractive yields and the opportunity to acquire NFTs at discounted prices if a borrower defaults.
Key Takeaways
- NFTfi is a peer-to-peer, decentralized lending protocol allowing users to secure loans with their NFTs as collateral.
- The platform is focused on creating a decentralized, permissionless, user-owned utility for the financialization of NFT-based economies.
- NFTfi was the first protocol to offer NFT-backed loans via a peer-to-peer lending model, starting in June 2020.
- The platform supports numerous top NFT collections, including Bored Ape Yacht Club, Mutant Ape Yacht Club, CryptoPunks, Doodles, and Art Blocks Curated.
- NFTfi allows borrowers to list NFTs for loans, and lenders bid on these listings by offering loan terms. Lenders can generate attractive yields and have the chance to acquire NFTs at discounted prices if a borrower defaults.
