NFTfi Strikes: How to Borrow NFTs

One of the hottest areas of DeFi right now is the intersection of DeFi and NFTs, also known as NFTfi.

In the current NFTfi ecosystem, there are already a variety of categories.

The largest currently are NFT marketplaces and liquidity protocols such as OpenSea, LooksRare, Zora, NFTX and Sudoswap. However, there are also NFT derivatives projects, NFT infrastructure projects, NFT pricing projects, and so on. People are exploring the frontiers of NFTs, so each of these areas is growing rapidly, but the biggest NFTfi category outside the market right now is NFT lending protocols. That said, NFT lending programs come in different forms and sizes.

This article will show how to borrow NFTs using the top projects in the field.

NFTfi

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NFTfi is the P2P marketplace for NFT mortgages.

In other words, the project lets borrowers come up with the expected NFT loan parameters, and then cryptocurrency lenders can choose to accept these terms on a person-to-person basis.

The advantage of this approach is that it allows you to fully customize and opt-in to your NFT loan parameters. The downside is that it can take a long time, if any, to find someone who is willing to accept the other party to your loan.

How to borrow and borrow on NFTfi

  1. Go to app.nftfi.com/lend/assets and connect your wallet
  2. Click on the NFT loan offer that interests you
  3. To continue, click on the “Make an Offer” button and choose to accept the borrower’s proposed terms or customize and request your own unique terms (amount, repayment, schedule, etc.)
  4. Next click on the “Grant” button and use your wallet to approve NFTfi to use your funds (this is a one-time transaction)
  5. Then use your wallet to finalize your loan offer. Your counterparty has 7 days to consider your offer before it expires.

How to borrow money on NFTfi

  1. Go to app.nftfi.com/borrow/assets and connect your wallet
  2. Use the filters provided to find the NFT you want to use as collateral in your wallet
  3. Use the interface that follows to specify the loan amount you want, loan schedule, interest rate, etc.
  4. Then use the “List as Collat eral” button to complete the list
  5. Wait to get the loan amount from the lender who accepts your terms!

BendDAO

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BendDAO is an NFT lending protocol that uses a peer-to-peer pooling method.

In other words, depositors of BendDAO provide ETH into working capital pools to earn interest, and then borrowers of projects can obtain instant NFT-backed loans through these pools.

How to borrow money on BendDAO

  1. Go to benddao.xyz and connect your wallet
  2. Sign the transaction to verify your address
  3. Click the Liquidity tab and click the Deposit ETH button
  4. Enter the amount of ETH you want to deposit and press the Save button
  5. Complete the transaction with your wallet and sit back and wait for you to earn money – the current lending rate is 8.5% APR

How to borrow money on BendDAO

  1. Go to the benddao.xyz/liquidity/batch-borrow and connect the wallet
  2. BendDAO currently accepts deposits from Azuki, BAYC, CloneX, CryptoPunks, Doodles and MAYC NFTs. If you have one of them and want to continue, press the “Deposit” NFT button
  3. Initiate two approval transactions to start, one to approve debt tokens and one to approve NFTs
  4. Enter the desired borrowed amount and press “Borrow ETH”
  5. You can then repay the loan as needed through BendDAO’s borrowing dashboard

NFTfi is just getting started

When Bitcoin and the first cryptocurrency appear, you can send them from address A to address B, and so on.

The arrival of the smart contract platform Ethereum has made digital tokens composable, expressive, and able to be used in a variety of different ways.

We see similar trajectories in NFTs from simple to advanced. At first, you can basically buy and sell NFTs, and while this is the beginning, it’s just the beginning of everything.

The rise of DeFi’s NFTfi space is beginning to pave the way for a variety of more advanced use cases, such as NFT derivatives, NFT lending, NFT pricing agreements, and more.

Today, NFT lending programs like NFTfi and BendDAO make it easier for people to get funding with their ETH, or to make money by offering ETH instead of NFTs.

These are early pioneers in the space, but I expect to see more NFT lending protocols emerge in the coming years, and they will become more and more user-friendly. Familiarizing yourself with this space now can bring dividends for the future.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nftfi-strikes-how-to-borrow-nfts/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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