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.

Can NFTS be used as collateral?

Independent lenders are increasingly using services like Arcade to connect with NFT owners who want to borrow money by using their NFTs as collateral. The idea is to give people who sink large amounts of money into NFTs, an increasingly popular investment, a way to get some cash without having to sell their digital assets.

How do I accept a loan from nftfi?

If you receive a loan offer you wish to accept, simply click on the NFT in question, choose to accept the loan, and then your NFT will be escrowed in a smart contract. To repay your loan, head over to the borrower’s “Loan” page and press the “Repay Loan” button whenever you want. NFTfi is the young NFT ecosystem’s premier loans protocol.

Will we see more NFT loan platforms in the future?

I expect we’ll see plenty more NFT loan platforms going forward as NFTs continue to become more important in society, and as appraisals and other valuations techniques get built out.