Lending platforms (NFT collateral)

Here are some entities accepting NFTs as collateral for DeFi lending:

• DeFi lending platforms: These platforms allow borrowers to use their NFTs as collateral to obtain loans.

  • NFTfi: This peer-to-peer platform allows borrowers to use their NFTs as collateral to obtain loans in various cryptocurrencies or stablecoins.

  • Arcade: This platform functions similarly to NFTfi but has added features such as "Vaults" where borrowers can deposit NFTs for quick borrowing options, and the ability for lenders to fund loans based on preset terms or to create custom offers.

  • BendDAO: A peer-to-pool lending platform enables borrowers to deposit high-value NFTs as collateral for loans of up to 40% of the NFT's "floor price".

• Other platforms or protocols:

  • Zumer: This platform offers secured lending against various NFT types. Borrowers can obtain loans and purchase "liquidation insurance" to protect against market downturns. Lenders can offer loans based on Zumer's credit scoring system, and a provision pool is available to compensate lenders in the event of default before the underlying NFT collateral is sold.

  • Pawn protocol: This protocol enables users to take out loans against ERC20 tokens such as wETH, USDC, or DAI as collateral.

NFT-backed financing and the emergence of more sophisticated solutions such as fractionalized NFTs and liquidity pools are in evolution and expected to further expand the range of assets accepted as collateral in the future.