Are you ready to witness the future of digital assets?
The intersection of NFT and DeFi has given rise to a new concept called NFTFi. This groundbreaking blockchain platform bridges the gap between NFT holders and non-holders. By doing so, NFTs will be more liquid than ever before. So, this blog will take you to the world of NFTFi where NFT and DeFi interact. Also, you can explore the four exciting ways to use NFTFi to increase your crypto wealth.
The Rise Of NFT And DeFi
The NFT market and DeFi protocols have been on a roll since their inception. Also, their merger has unlocked massive potential for the entire blockchain industry. The NFT market witnessed a total value of over $2.5 billion in the summer of 2021. Similarly, in the summer of 2020, DeFi hit a total value locked (TVL) of approximately $10B from various protocols. The convergence of NFT and DeFi has created an opportunity to bridge the gap between these two ecosystems and unlock new possibilities.
How NFTFi Works?
NFTFi is the ultimate platform for NFT liquidity. As I said earlier, this platform connects NFT holders with eager borrowers through the magic of smart contracts.
Here is how it works, Simply list your NFT on the marketplace Set the terms of the deal Watch as the smart contracts lock it in escrow Borrowers will lend funds in exchange for your NFTs Just sit back and collect interest on your loan
It's a win-win for everyone involved - so why wait? Seek the best NFT marketplace development services from our experts today.
Uses Of NFTFi - The 3 Tactics
NFTFi offers three possible uses of NFT and DeFi that can be used depending on the blockchain settings. These include,
NFT Fractionalization
Dreaming of owning a BAYC or CryptoPunk NFT but don't have millions lying around? Say hello to NFT fractionalization.
Once the NFT is locked up in a vault, ERC-20 tokens are minted to represent a share of ownership in the whole asset. These tokens can then be traded on public and private marketplaces, giving even the smallest investor a shot at the big leagues. Make your dreams a reality with NFT fractionalization.
NFT Renting
Rent out your NFTs to other users and enjoy the fee. There are two ways to do it: collateralized and non-collateralized. With collateralized renting, you can borrow funds in exchange for your NFTs as collateral. Non-collateralized renting lets you rent out your NFTs without any collateral.
So, are you looking to earn some extra cash with your NFTs? NFT renting is the way to go.
Lending/Borrowing
NFTFi enables lending and borrowing through NFTs, which allows NFT holders to use their assets as collateral for loans. This feature can be particularly useful for NFT holders who want to access liquidity without selling their NFTs or for traders who want to leverage their NFT holdings to increase their trading capital.
Don't wait - join the NFTFi revolution today and start taking your NFT game to the next level!
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