X2Y2 Fi is a top-level module in the NFT ecosystem of the X2Y2 Marketplace, designed to provide specialized NFT financing services, which will operate under the fi.x2y2.io subdomain. All NFT loan activities, including lending, borrowing and refinancing, will take place within the X2Y2 Fi subdomain.
NFT lending key features
- Peer-to-peer model allows rare NFTs to take out a larger loan.
- NFT refinancing, allowing borrowers to potentially refinance their loan at a more favorable rate and schedule repayment for a later date.
- Only whitelisted collections of NFTs can be used as collateral. In addition, these NFTs can't be suspected of being stolen or deleted, and must receive a valid credit offer (i.e. the lender must be willing to lend you wETH).
- X2Fi Batch allows borrowers to collateralize several different NFTs simultaneously and facilitates fast and efficient cross-series and cross-currency loans.
- Loan repayment reminders. If you're worried about forgetting to repay your loan, you ca linking your email, Twitter account and Google calendar to X2Y2 Fi. You'll get a reminder email 24 hours before your repayment due date to reduce your risk of not repaying your loan.
ERC-20 Loans
Users package their tokens into NFTs and use the corresponding ERC-721 NFT as collateral to borrow USDC on the X2Y2.Fi platform. NFTs can be withdrawn (burned) at any time and exchanged for the corresponding number of tokens. When minting, the system automatically sets the number of NFTs that can be minted based on the number of tokens in the wallet. Each NFT is a bundle of tokens with a different amount. Users can easily mint multiple NFTs with a single click or adjust the quantity according to their preferences.
Users can borrow their holdings of popular ERC-20 tokens (such as $SHIB, $PEPE, etc.) packaged in NFT in exchange for USDC.
The minimum minting quantity for each token depends on its value. For example, the minimum quantity for minting SHIB is 100,000,000 tokens and for PEPE is 1,000,000,000 tokens to mint one NFT.
You can withdraw tokens as soon as the loan is repaid. NFTs that have been minted but not used for loans can also be withdrawn.
Security
X2Y2 Fi has two methods to rule out suspicious NFTs.
- Static interception involves checking for blacklist projects in a local database when a borrower sends a loan request. Any unusual events, such as the theft of NFTs owned by celebrities or influencers, will be immediately added to the local database to intercept blacklist projects. X2Y2 Fi regularly updates the local database by querying the marked projects, excluding abnormal ones, and removing them from the blacklist.
- Dynamic interception involves conducting a real-time online suspect query on Opensea after no abnormalities are found in the local database. This ensures that users don't lend or borrow suspicious NFTs and avoids the risk of irretrievable assets.
Also X2Y2 Fi provides the option 'NFT Protection” is a unique feature designed to protect borrowers' NFTs from losses due to forgetfulness or other reasons preventing timely repayment of the loan. Borrowers can activate the protection feature, which automatically accepts a repayment extension offer 1 hour before the due date, and pay 0.05 wETH to the lender who provided the protection when repaying the loan.
