We do many things with our digital assets these days; trading, locking, and everything in between. But one way of leveraging assets that is fast becoming an industry favourite is their use for borrowing against fiat or cryptocurrency.
That’s right, if you have an NFT or any other digital asset lying about, you might not need to sell it if you are in need of cash. Instead, you can visit one of the many NFT borrowing and lending platforms and get a loan with the asset used as collateral. This is, obviously, very convenient for NFT holders but what is the best option on the market?
With all the different platforms that promise money for your NFT, which gives the best deal?
One of the best things about NFTuloan is the fact that it accepts NFTs of virtually every kind; Art, collectibles, domain names, music, photography, sports, trading cards, utility, and even virtual worlds.
The site, which is live on the Ethereum testnet, has a very quick and easy process; you connect your NFT wallet, get an estimation of whatever asset you select, state your loan period, and apply. If your application is successful, your funds get paid to your ETH wallet within seconds, along with a remarkably low interest rate.
In terms of the loan period, NFTuloan allows users to take loans between 1 hour to 30 days, meaning you can take advantage of the market in the long or short-term. Beyond just letting you get liquidity for your assets, NFTuloan also offers staking of up to 30% APR for ETH tokens. This is one of the highest APRs in the market and lets its users profit in more ways than one. The company has also recently announced that it will go live on mainnet in the next 2 weeks.
Unlike some other offerings in the market, NFTfi works more like a p2p marketplace than a direct loan provider. For both those that want to lend or borrow NFTs, there is the option to search through listings.
For example, an NFT holder can create a listing for their asset and get loan offers from those interested. If they choose to accept one of the offers, they will receive wETH or DAI liquidity into their wallet, with the NFT locked in an escrow smart contract.
If the loan is repaid by the set time, the lister gets their item back. If the loan is not repaid, the lender can take possession of the asset.
For those looking to loan NFTs, there are assets listed from some of the top collections such as the Bored Ape Yacht Club and CryptoPunks that they may leverage. Some users of the site are even known to offer loan-to-own services that give them access to choice NFTs.
Arcade.xyz’s business model is founded on offering its users the best of both worlds when it comes to getting offers on their NFTs. Built on the prawn protocol, users can upload their assets to its Dapp and then open a loan request. From there, interested parties can fund these requests or make an offer of their own.
Remarkably, Arcade.xyz lets users upload multiple NFTs for a single loan transaction, as well as wrapping data. If a user does not want to go through the process of opening a loan request and dealing with different offers, they can consult Arcade’s OTC desk which will help with custom appraisals or with any issues they might run into during the loan process.
Ultimately, what Arcade.xyz offers is flexibility for its users in that they can either field offers from other users or get a custom appraisal from the site itself. Because other users can make offers on loan requests, they can complete loans with a variety of cryptos.
Get Your Liquidity on
These days, there is no need for your crypto assets to sit idly in your wallet. The wealth of options in the market means that you can get liquidity for your assets in all sorts of ways.
But NFT loan and liquidity platforms are not all created equal and some might offer more flexibility and benefits than others. While the market is full of platforms, the above are some of the best to choose from.
The post Want Liquidity From Your NFTs? Here Are the Top Options in 2022 appeared first on Blockonomi.