NFTs for DeFi

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You may have already seen youtube videos covering how to get cash for your NFTs without selling them, or you may now be just considering such options. We’ve been wondering this and checking things out, starting with this good resource to start with. This video on the nftfi platform.

The Defiant Youtube Video Turn NFTs into Cash

Let’s say you have a collection of NFTs, you love the art and artist, the NFT community, or the IP or CCO benefits you get for making copies, prints and so on. So are there ways to kind of stake your NFTs from your collection into a portfolio that can be borrowed against, to borrow funds against and attract returns on lending those NFTs to others? It be an interesting perk and something we’re exploring now.

Unique NFTs Unique Value

Questions arise to our mind, like which blockchains, protocols, which swap sites, do I need to bridge NFTs to other layer2 or layer1 protocols, how safe is bridging, what’s the cost of gas, etc. All kinds of questions spring to mind when faced with an open book and no reference. Following the video, you’ll see that the dude puts up a Bored Ape as collateral on nftfi and gets offers. The deal would have loaned him quite a chuck of change, but on the other hand with the extra payback terms plus the transaction fees, it’s going to cost him about $500 to do it.

NFT Pawn Shop – NFT Collateral

Several more sites still to explore that are pretty new or still in testnet phases, like TrustNFT.org, Drops.co and Pawnfi.com aswell as nftfi.com so we see these platforms exist some as a peer to peer agreements wrapped up in the smart contracts, it’s a cool side of web3 where different blockchains with NFTs are developing similar features in the different ecosystems. We’re sure this is a side of NFTs and DeFi us like many, that we’re still dipping our elbow in the waters, learning as we go. We’ll for sure be looking up more protocols and platforms to add to this article as examples and to make a more thorough look at what is out there.

Different NFT Utility Types

Another great Youtube video we’ve found helpful regarding other types of DeFi with NFTs, staking, fractionalization, passive income and such.

Brett Malinowski – NFT Utility

More and more you can see the value can come in many forms, rewards from utility tokens, staking, entering liquidity pools, club memberships, or event or metaverse or discord access, burning and deflationary tokenomics, breeding and such. There’s no doubt a hefty movement towards GameFi projects also embracing NFT tech, skins, upgrades, maps etc. No reason why all this can be utilized and provide great and lasting value to the users, creators, gamers, artists, coders and everyone in the pipe.

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