Is NFT-backed lending the future of DeFi?
NFT is not the mainstay of the crypto economy. Since the first blockchain-certified art hit the headlines where some of the first NFTs were sold at a high price, like Beeple’s First 5000 days that was sold for $69 million, the crypto-public-desire has continued unabated. There are new NFTs being collected and minted every day and the new collections such as the crypopunks are continuing to sprout up. In fact, even soccer teams have started to mint their NFTs so that their fans have a new outlet to support them. This trade developed over digital art is evolving with the rise of cryptocurrency.
Over time, art has managed to retain and improve its value successfully. This has resulted in a large amount of wealth being dormant in galleries all over the world. This wealth can be made fungible and used in different markets. NFT-backed lending mechanisms can help with this. With this, owners of NFTs have a chance to unlock the value reserve and develop their assets. NFTs, give them an opportunity to be more fungible than classic art which can result in it superseding its value.
With NFT Tech’s liquidity matching engine, users will be able to establish their NFTs value on the open market allowing them to access crypto-capital which can be redistributed through the DeFi market’s wider spheres. This can be the DeFi future. It will allow the holders to earn an impressive yield by putting the value of their NFT to work. This can be done by deploying it into faster-rising assets, further lending, or staking.