Can you borrow against an NFT?

But what if you want to retain ownership of an NFT and instead borrow against it so you can access some immediate liquidity. One compelling young project making this kind of NFT lending possible today is NFTfi, an NFT-collateralized loan platform launched last year that lets users readily put up NFTs against loans in permissionless fashion.

What is the borrowing rate on nftfi?

The borrowing rate on this platform is 12%-15% depending on your NFT and the market. NFTfi connects lenders looking to give out money to borrowers looking for money. On NFTfi, borrowers connect to the wallet, which stores the private key to their NFT on the blockchain, to list their NFT for a loan.

What happens if you don't repay your NFT?

The borrower will put up their NFT as collateral, and in return, they will receive a loan from the lender. If the borrower fails to repay the loan and interest at the end of the set time, the lender can take possession of the NFTs or liquidate the NFT to retrieve the money.

What are the benefits of NFT lending?

With NFT lending, you can get quick cash without selling your NFT. You won’t have to part with your digital asset as long as you pay back the loan and interest on time. Make more without touching your assets: NFT lending also provides an opportunity for the borrower to earn more without having to sell their NFTs.