Although the NFT field has always been regarded as having incalculable potential, it is also regarded as too late.
In the past two to three years, the NFT’s territory has been quietly expanding, and it has now covered multiple levels from the underlying token protocol and public chain to development platforms, applications, and trading platforms.
It can be said that the infrastructure components of the NFT are basically complete-they can fully support the emergence of various innovative applications, so it should be the eve of the ecological outbreak.
Especially when DeFi has entered the fast lane of rapid development, NFT+DeFi is at the forefront of the trend. In addition to collectibles, NFT will also have a wider range of applications in finance and warrants.
Everything that DeFi has experienced in the FT world will be repeated in the NFT world.
In the past year, the most critical keyword was “liquidity.”
Therefore, in the field of NFT in 2021, we should focus on projects that release the liquidity of NFT.
For example, NFTfi, a P2P version of NFT mortgage lending platform.
1. Project Overview
NFTfi is a P2P version of NFT mortgage lending platform, which will be launched in February 2020.
The principle is like a typical pawnshop, except that the traditional pawnshop is one-to-many (organization to multiple mortgagers), while NFTfi is many-to-many.
Borrowers put their NFT assets on the market as collateral, and then the lenders in the market will quote (loan amount, loan period, and the total amount of repayment at maturity).
The borrower finally chooses which loan to accept, and then will receive wETH or DAI from the lender (currently only these two assets are supported).
At the same time, the borrower’s NFT assets will be locked in the NFTfi smart contract until the borrower pays off the loan within the maturity date (the loan period ranges from 7, 14, 30, and 90 days).
If the loan is not paid off before the due date, the lender will get these NFT assets.
It is worth mentioning that although NFT assets are locked in smart contracts during the loan period and do not belong to the borrower or lender, the platform will generate the corresponding NFT promissory notes.
This promissory note belongs to the lender and can also be liquid, just like a national debt.
In addition, NFTfi does not charge any fees to the borrower, the borrower only pays interest to the lender, and the commission charged by NFTfi is 5% of the lender’s profit.
And NFTfi officials have also stated that with the increase in transaction volume and the number of users, fees will be further reduced in the future.
2. Application scenarios
Any ERC-721 token can be used as collateral, and then a loan close to the market-recognized price can be obtained, instead of over-collateralization, so as to obtain more sufficient liquidity.
In order to avoid vicious competition, NFTfi sets the upper limit of the repayment amount to 50% higher than the loan amount.
You can provide loans for your favorite NFT assets, and then get your own satisfactory income.
If the borrower defaults, that’s even better-the lender will get the collateral they like.
And during the loan period, the lender can also sell NFT promissory notes (equivalent to NFT assets + interest) to solve their liquidity dilemma.
Since its release in June 2020, NFTfi has provided loans of more than 824 ETH.
3. Token model
Currently, NFTfi does not issue tokens.
However, according to official information, NFTfi will move towards community-based operations in the future, and the launch of governance tokens is the first step in this journey.
And in the coming weeks and months, officials will reveal more information about governance tokens.
4. Investment institutions
NFTfi completed $890,000 in financing a week ago, and the investment lineup is very large.
The largest investors are CoinFund and 1KX, which can be said to be investment funds with rich experience in the field of NFT and DeFI.
Many developers in the NFT and DeFi fields also participated in this financing, such as Sebastien Borget, COO of The Sandbox, and Roham Gharegozlou, CEO of Dapper Labs (the development team of NBA Top Shot).
The participation of these investors brings not only money, but also more potential resources.
At least let the outside world be more certain about the growth space of NFTfi.
NFTfi stated that the financing is to expand the functionality of the platform, increase support for Flow and other public chains, and fund the development of governance tokens.
5. Team Introduction
Stephen Young is the founder and CEO of NFTfi, a token engineer, smart contract developer and designer in the blockchain industry, based in South Africa.
Stephen Young’s previous professional career was 5 years at Allan Gray (the largest investment company in Africa), responsible for technology and digital marketing, and then served as chief product officer at Coindirect, a P2P crypto exchange for one and a half years.
He is also an artist, trying to paint and produce mixed media art.
He revealed that his current work focuses on token engineering, Solidity and DApp development.
6. Community situation
Twitter: 6256 followers
Discord: 1354 members
Medium: 99 followers
7. Liancha reviews
If compared according to the degree of perfection of the market layout, the current NFT market is roughly equivalent to the DeFi market in the first half of 2020.
The modules and functions that should be found in DeFi in the FT world should also be available in the NFT world, especially products that release liquidity.
NFTfi can meet the borrowing needs of users and the liquidity needs of NFT assets. It can be said that it is at the forefront of NFT+DeFi.