Borrowing against NFTs recently surpassed an ATH of $1 billion.
If you ain't been paying attention to NFT Finance, now it's the best time.
A thread on positioning for the NFTFi narrative gold rush + some alpha drips for you.↓🧵
If you ain't been paying attention to NFT Finance, now it's the best time.
A thread on positioning for the NFTFi narrative gold rush + some alpha drips for you.↓🧵
As the name implies, NFT Finance is literally the fusion of NFTs and DeFi.
It's an attempt to unlock more use cases on NFTs beyond the usual trading as we know it.
With NFTFi, users can lend, borrow, rent, and hedge their NFTs unlocking greater utility and yields.
It's an attempt to unlock more use cases on NFTs beyond the usual trading as we know it.
With NFTFi, users can lend, borrow, rent, and hedge their NFTs unlocking greater utility and yields.
To better understand NFT lending, let's analyze the two primary types of lending protocols:
a) Peer-to-Peer
b) Peer-to-Pool
a) Peer-to-Peer
b) Peer-to-Pool
a) Peer-to-Peer (P2P) Lending Protocols
Here, the platform provides the infra that connects prospective lenders and borrowers but is not directly involved.
If you use CEXs, you'll be familiar with this model.
Here, the platform provides the infra that connects prospective lenders and borrowers but is not directly involved.
If you use CEXs, you'll be familiar with this model.
b) Peer-to-Pool Lending Protocols
In peer-to-pool lending platforms, lenders fund a pool, and the funds are lent out to interested borrowers against collateral at a % interest rate.
Similar to Aave's pool model.
In peer-to-pool lending platforms, lenders fund a pool, and the funds are lent out to interested borrowers against collateral at a % interest rate.
Similar to Aave's pool model.
it would interest you to know that NFT lending platforms offer more attractive yields than Aave & Lido.
So, who are the key players in the NFT finance space?
There are a couple of interesting projects pushing the boundaries of NFTs, but for the sake of this thread, we'll look at 5 players.
- ParaSpace
- BendDAO
- JPEG'd
- NFTfi
- Blend (by Blur)
There are a couple of interesting projects pushing the boundaries of NFTs, but for the sake of this thread, we'll look at 5 players.
- ParaSpace
- BendDAO
- JPEG'd
- NFTfi
- Blend (by Blur)
1. ParaSpace / @ParaSpace_NFT
Currently the largest NFT lending protocol by TVL, ParaSpace allows users to lend and borrow against fungible & non-fungible tokens.
Also, users can access immediate liquidity by collateralizing and borrowing against their NFTs.
Currently the largest NFT lending protocol by TVL, ParaSpace allows users to lend and borrow against fungible & non-fungible tokens.
Also, users can access immediate liquidity by collateralizing and borrowing against their NFTs.
2. BendDAO / @BendDAO
BendDAO is frontrunning the peer-to-pool NFTFi narrative and has seen phenomenal growth since its mainnet launch in 2022.
Essentially, they allow users to borrow against blue-chip NFT instantly.
BendDAO is frontrunning the peer-to-pool NFTFi narrative and has seen phenomenal growth since its mainnet launch in 2022.
Essentially, they allow users to borrow against blue-chip NFT instantly.
3. JPEG'd / @JPEGd_69
JPEG'd enable users to leverage their NFTs and unlock liquidity without ever selling.
They're one of the biggest $CVX holders, enabling them to wield governance rights and get juicy yields.
JPEG'd enable users to leverage their NFTs and unlock liquidity without ever selling.
They're one of the biggest $CVX holders, enabling them to wield governance rights and get juicy yields.
4. NFTfi / @NFTfi
They're a peer-to-peer NFT lending protocol that facilitates NFT trades. With NFTfi, users can list their NFTs and start getting loan offers.
Recently, they launched an incentivized lending program to reward users with points.
They're a peer-to-peer NFT lending protocol that facilitates NFT trades. With NFTfi, users can list their NFTs and start getting loan offers.
Recently, they launched an incentivized lending program to reward users with points.
5. Blend - @blur_io
Blend is the latest entrant to the NFTFi party, and like always, they came prepared.
The platform has two primary products: NFT collateralized lending and "buy now, paylater".
A few days after launch, they've already processed about 39K ETH in loans.
Blend is the latest entrant to the NFTFi party, and like always, they came prepared.
The platform has two primary products: NFT collateralized lending and "buy now, paylater".
A few days after launch, they've already processed about 39K ETH in loans.
Worthy Mention:
@Tribe3Official, an NFT Futures & Prep DEX, recently raised $2.1M, led by Spartan Group.
Plus, several other NFTFi platforms hitting ATHs recently.
@Tribe3Official, an NFT Futures & Prep DEX, recently raised $2.1M, led by Spartan Group.
Plus, several other NFTFi platforms hitting ATHs recently.
It is clear that the NFTFi narrative is quickly picking up steam and might see phenomenal growth in the remaining parts of 2023.
Research by @ElectricCapital reveals that 80% of new wallets' first transaction in 2022 was related to NFTs.
NFTFi is coming, anon.
Research by @ElectricCapital reveals that 80% of new wallets' first transaction in 2022 was related to NFTs.
NFTFi is coming, anon.
That's all for today!
Follow me @ViktorDefi for more insightful threads on crypto narratives.
Subscribe to my free newsletter for in-depth alphas and DeFi insights. viktordefi.substack.com
Follow me @ViktorDefi for more insightful threads on crypto narratives.
Subscribe to my free newsletter for in-depth alphas and DeFi insights. viktordefi.substack.com
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