@maximiliane13
What is NFT lending, and how does it work?
NFT lending allows users to borrow cryptocurrency using NFTs as collateral. Platforms like NFTfi and BendDAO facilitate peer-to-peer lending, where lenders offer loans against NFT assets. If the borrower defaults, the lender claims the NFT. This system provides liquidity without requiring asset sales, benefiting collectors needing short-term funds. However, NFT lending carries risks, such as price volatility affecting collateral value. Interest rates and loan-to-value ratios vary by platform. Despite risks, NFT lending unlocks new financial possibilities in the Web3 space.
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