NFTfi is a peer-to-peer, decentralized lending protocol for taking loans that are collateralized against your NFTs.
All loans have fixed terms with no price liquidation, and borrowers can renegotiate existing loans and borrow against bundles of multiple NFTs.
For lenders, NFTfi provides a platform to generate attractive yields and the ability to purchase NFTs at a discount to market price in the event of borrower default.
NFTfi supports Wrapped Ethereum (wETH), USD Coin (USDC), and Dai (DAI).
NFTfi smart contracts and SDK support Gnosis Safe multi-sig, but the dApp is not yet supported.
Advantages of p2p NFT lending
- Borrowers get higher LTVs on average (mainly due to competition and lender diversity; there are many lenders who offer very high LTVs / take very high risk because they have long collateral and don't mind defaults);
- No auto-liquidation, so borrowers always have the option to repay loans before maturity; they can't be liquidated halfway through, as can happen in a P2Pool protocol
- P2P protocol, doesn't assume any protocol risks and doesn't need liquidity management, hence doesn't need a liquidation mechanism).
Listing Collections
Users can only borrow and lend against collections that have been listed.
The NFTfi team strives to approve new collections based on several quantitative and qualitative criteria:
- Minimum price > 0.5 ETH
- Historical trading volume > 500 ETH
- Sales in the last 4 weeks > 50
- ERC-721 standard
- Post your request in Discord channel and encourage at least 10 people from the project community to support your request using emoji.
- Once your request has garnered at least 10 emoji, fill out the Google listing form to be reviewed by the team (NFTfi compiles the listing every 4 weeks, with some exceptions).
NFTfi options
- Bundles allow borrowers to collateralize multiple NFTs at once. This feature provides borrowers with additional flexibility when negotiating higher-cost loans with lenders and allows loans with multiple collateral to be renegotiated and renewed quickly and with less gas.
- Multi-asset lending. Borrowers can now bundle several NFTs (up to a maximum of 236) and obtain a single loan against all these assets at once. This significantly reduces time and costs for both borrowers and lenders.
- Flexibility and gas efficiency. Bundles can be modified and reused an unlimited number of times. Borrowers don't have to create a package from scratch every time they want to delete or add an NFT for the next loan. They can simply "unseal" the Bundle, make the necessary changes, reseal it, and include it for the next loan. This makes NFTfi Bundles the most cost-effective and flexible way to borrow against multiple NFTs.
- Loan Negotiation. Negotiation allows borrowers and lenders to renegotiate the terms of a loan at any time before the loan is foreclosed (even if the loan is already delinquent). This is usually used to extend the term of the loan, increase or decrease the interest rate and when the borrower fails to pay the loan on time.
