Best Projects to Borrow Against Your NFTs in 2022 – CryptoMode

As a new trend in the billion dollar space, some projects are now giving you the option to leverage your NFT holdings as collateral for short and long term loans. Are you currently planning to borrow against your assets? Do you need instant money to buy more promising NFTs?

This article will discuss some of the best rigs to borrow against your NFTs in 2022.

According to the official website, NFTuloan is a liquidity pool provider for domain names, digital arts, trading cards, virtual items, game cards, etc. This platform has advanced and state-of-the-art tools capable of liquefying your dormant or unused NFTs.

One fascinating feature of this NFT lending platform is the adoption of the new peer-to-pool lending model. The peer-to-pool system eliminates the need for user interactions – lenders provide tokens to a common pool of assets, and the borrower takes cash or tokens from said pool. A smart contract and an EVM-enabled machine manage this lending model, reducing, to a greater extent, the fictitious claims of project developers.

NFTuloan is a pawnbroker for NFTs. In less than a few minutes, you can easily leverage your NFTs for a short or long term loan. Unlike other projects, NFTuloan is quite transparent. The team incorporates an “Instant NFT Estimation” mechanism that provides ultra-fast, transparent, fair and well-calculated valuations of your tokens.

NFTuloan also incorporates a secondary market where NFTs from borrowers who default on their payments are sold to community members at a whopping 30% discount. NFTuloan is fast, fair and super convenient.

Advantages

  • It introduces a more proficient peer-to-pool lending model.
  • NFTuloan offers a loan repayment period of 90 days.
  • NFTuloan is a DAO-based platform – community members reserve the right to vote for or against future changes.
  • NFTuloan is an insurance-backed NFT lending platform.
  • The peer-to-pool lending structure provides NFTuloan with sufficient liquidity.
  • NFTuloan accepts up to 200 unique NFT collections.

The inconvenients

BendDAO is a peer-to-pool based decentralized NFT liquidity platform. Like the previous platform, BendDAO allows you to borrow against your NFTs. Although it is one of the oldest projects in the space, BendDAO is quite complicated.

Like NFTuloan, BendDAO, as the name suggests, is based on DAO and has a loan repayment period of 90 days. It is not a newbie-friendly platform to leverage NFTs as collateral for loans. The inability to navigate the website easily makes it a bit difficult for the average user to get started.

With a TVL of 30%, compared to NFTuloan’s 70%, BendDAO, while an ideal platform, lags behind in several respects. Moreover, accepting only six NFT collections is another disadvantage of this famous platform.

Advantages

  • BendDAO is a community project.
  • BendDAO incorporates the peer-to-pool lending model.
  • It has a loan repayment tenure of 90 days.

The inconvenients

  • It only has a 30% TVL.
  • It only accepts six NFT collections.
  • It is not covered by insurance.
  • It is not suitable for beginners

According to the website, NFTfi allows users to leverage their NFTs for loans in a safe, secure, and anonymous way. While NFTfi offers attractive returns to lenders, recent instances of DeFi project “rug pulling” leave us skeptical of projects with all these lucrative, too-good-to-be-true offers.

Unlike BendDAO and NFTuloan, NFTfi espouses the peer-to-peer lending model. Like NFtuloan, NFTfi is incredibly easy to use – the website is intuitive and user-friendly. With a TVL of 40% and a payback period of 90 days, NFTfi is an ideal platform.

Although NFTfi is not powered by DAO and has no insurance and liquidation, it still ranks as one of the best projects to borrow against your NFTs in 2022.

Advantages

  • It’s easy to use.
  • Ideal for beginners.
  • It has a higher TVL than BendDAO.
  • It has a recovery period of 90 days.

The inconvenients

  • NFTfi only accepts 20 NFT collections.
  • It is not covered by insurance.
  • It is not a community project.
  • It uses chaotic peer-to-peer lending structure.

Built on the Pawn Protocol, Arcade is an infrastructure layer for NFT liquidity. Like the others, Arcade offers you the possibility of borrowing against your assets.

It integrates an NFT estimation calculator. Although it is an advanced platform, Arcade only supports six NFT collections and has only 4% TVL, which is poor for such a project. Like the others, it has a 90-day recovery period.

Advantages

  • It has a recovery period of 90 days.
  • It has an NFT estimation calculator.
  • It’s easy to use.

The inconvenients

  • It adopts the peer-to-peer model.
  • It only has a TVL of 4%.
  • It is not covered by insurance.
  • It is not community powered.
  • It only accepts six NFT collections.

Intended to bridge the gap between NFTs and DeFi, JPEG’d is an NFT liquidity platform that allows you to borrow against your holdings. JPEG’d, like BendDAO and NFTuloan, adopts the peer-to-pool lending model.

With a TVL of 32% and a payback of 30 days, JPEG ranked among the top NFT liquidity platforms.

Advantages

  • JPEG’d uses the peer-to-pool lending model.
  • He is friendly.
  • It is ideal for beginners.

The inconvenients

  • It only accepts six NFT collections.
  • It has a TVL of 32%.
  • It is not community powered.
  • It is not covered by insurance.

Although there are other NFT liquidity platforms, these are the best to borrow against your NFTs in 2022.

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Sara R. Cicero