Have you ever heard of NFT-loans?

⏺Have you ever heard of NFT-loans? That's an interesting theme to discuss!

NFT loans, as the name suggests, are a type of loan in the crypto space where NFTs are used as collateral.

NFT loans work similarly to crypto loans. Here's a simplified example of how an NFT loan works:

1️⃣ An NFT owner uses their NFT as collateral and requests a loan on a lending platform that supports NFT loans.

2️⃣ The platform, or other users on the platform, assess the value of the NFT.

3️⃣ Once the NFT’s value is agreed upon, the lender provides a loan to the NFT owner, typically issued in a stablecoin. The NFT is then locked in a smart contract until the loan is repaid. The smart contract generally specifies the loan’s terms, including the desired amount, duration, and interest rate.

4️⃣ Once the borrower repays the loan, the NFT will be unlocked and returned to the borrower.

Did you ever try NFT loans? What's your opinion on that? Let's discuss it!