As a new trend in the billion-dollar space, some projects now offer you the opportunity to leverage your NFT holdings as collateral for short and long-term loans. Are you currently thinking of borrowing against your holdings? Do you need instant cash to purchase more promising NFTs?
This piece will discuss some of the best platforms to borrow against your NFTs in 2022.
According to the official website, NFTuloan is a liquidity pool provider for domain names, digital arts, trading cards, virtual items, gaming cards, etc. This platform boasts cutting-edge, advanced tools capable of liquifying your dormant or unused NFTs.
One fascinating feature of this NFT loan platform is the adoption of the novel peer-to-pool lending model. The peer-to-pool system dispels the need for interactions with users—lenders supply tokens to a communal asset pool, and the borrower takes liquidity or tokens from the said pool. A smart contract and EVM-compatible machine manage this lending model, decreasing, to a greater degree, fictitious claims from project developers.
NFTuloan is a pawn shop for NFTs. In less than a few minutes, you can easily leverage your NFTs for either a short or long-term loan. Unlike other projects, NFTuloan is pretty transparent. The team incorporates an “Instant NFT Estimation” mechanism that provides super-fast, transparent, fair and well-calculated valuations of your tokens.
NFTuloan also incorporates a secondary market where NFTs of borrowers who default on their payments are sold to community members with a whopping 30% discount. NFTuloan is fast, fair, and super convenient.
BendDAO is a decentralized peer-to-pool-based NFT liquidity platform. Like the previous platform, BendDAO allows you to borrow against your NFTs. While this is one of the oldest projects in the space, BendDAO is quite complicated.
Like NFTuloan, BendDAO, as its name implies, is DAO-based and has a 90 days loan restitution period. It is not a beginner-friendly platform to leverage NFTs as collateral for loans. The inability to easily navigate the website makes it a tad bit difficult for the average user to get started.
With a 30% TVL, compared to NFTuloan’s 70%, BendDAO, although an ideal platform, lags in several ways. Additionally, accepting only six NFT collections is another drawback of this famous platform.
Per the website, NFTfi allows users to leverage their NFTs for loans in a safe, secure, and anonymous manner. While NFTfi offers attractive yields to lenders, the recent cases of DeFi projects “rug pulling” leaves us skeptical about projects with all of these lucrative and too-good-to-be-true offerings.
Unlike BendDAO and NFTuloan, NFTfi espouses the peer-to-peer lending model. Like NFtuloan, NFTfi is incredibly easy to use—the website is intuitive and user-friendly. With a 40% TVL and a 90 days payback period, NFTfi is an ideal platform.
While NFTfi is not DAO-powered and does not have insurance and liquidation, it still ranks as one of the best projects to borrow against your NFTs in 2022.
Built on the Pawn Protocol, Arcade is an infrastructure layer for NFT liquidity. Like the others, Arcade offers you an opportunity to borrow against your holdings.
It integrates an NFT estimate calculator. While this is an advanced platform, Arcade only accepts six NFT collections and only has 4% TVL, which is poor for such a project. Like the others, it has a 90 days payback period.
Aimed at bridging the gap between NFTs and DeFi, JPEG’d is an NFT liquidity platform that allows you to borrow against your holdings. JPEG’d, like BendDAO and NFTuloan, adopts the peer-to-pool lending model.
With a TVL of 32% and a 30 days payback time, JPEG’d made a list as one of the best NFT liquidity platforms.
While there are other NFT liquidity platforms, these are the best ones to borrow against your NFTs in 2022.
CryptoMode produces high quality content for cryptocurrency companies. We have provided brand exposure for dozens of companies to date, and you can be one of them. All of our clients appreciate our value/pricing ratio. Contact us if you have any questions: email@example.com None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. No reviews should be taken at face value, always conduct your research before making financial commitments.
According to a press release, the U.S. Securities and Exchange Commission has filed charges against…
A blockchain company, backed by veterans in the real estate industry and based in Dubai,…
Since cryptocurrency started gaining popularity in the mid-2010s, celebrities have also been in the know…
The crypto market is going through a rough patch, with many investors fearing that this…