NFTfi is a decentralized marketplace that allows NFT holders to use their digital assets as collateral to secure cryptocurrency loans through smart contracts. This platform addresses the liquidity challenge faced by NFT owners by enabling them to access funds without selling their valuable assets.
Funding
$11M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
NFT holders often face liquidity challenges because their digital assets are difficult to convert into immediate capital without selling. This illiquidity can prevent NFT owners from seizing investment opportunities or covering unforeseen expenses.
Solution
NFTfi is a decentralized, peer-to-peer marketplace that enables NFT owners to obtain cryptocurrency loans by using their NFTs as collateral. Borrowers list their NFTs and receive loan offers from lenders, agreeing on terms such as interest rate and repayment period. Upon accepting an offer, the NFT is locked in a secure escrow smart contract, and the borrower receives the loan amount. If the loan is repaid on time, the NFT is returned to the borrower; otherwise, the lender can claim the NFT.
Target Audience
The primary target audience includes NFT holders seeking short-term liquidity without selling their assets, as well as cryptocurrency lenders looking to earn interest by providing loans collateralized by NFTs.
Features
- Peer-to-peer lending and borrowing facilitated through smart contracts on the Ethereum blockchain
- Flexible loan terms negotiated directly between borrowers and lenders
- Non-custodial platform where NFTs are held in escrow smart contracts, ensuring secure transactions
- No auto-liquidation mechanism, providing borrowers with fixed terms and avoiding liquidation risks due to floor price fluctuations
- Support for various loan types, including flexible loans where borrowers can repay prorated interest
- Refinancing feature allowing borrowers to renew existing loans without upfront repayment
- Transparent and open platform with double-audited smart contracts for enhanced security