Want liquidity from your NFTs? Here are the best options in 2022
We do a lot of things with our digital assets these days; trading, locking and everything else. But one way to leverage assets that is quickly becoming an industry favorite is using them to borrow against fiat or cryptocurrencies.
That’s right, if you have an NFT or any other digital asset lying around, you might not need to sell it if you need the money. Instead, you can visit one of the many NFT borrow and lend platforms and get a loan with the asset used as collateral. This is obviously very convenient for NFT holders but what is the best option on the market?
With all the different platforms promising money for your NFT, which one offers the best deal?
One of the best things about NFTuloan is the fact that it accepts NFTs of virtually any type; Art, collectibles, domain names, music, photography, sports, trading cards, utilities, and even virtual worlds.
The site, which is live on the Ethereum testnet, has a very simple and quick process; you connect your NFT wallet, get an estimate of the asset you select, indicate your loan term and apply. If your application is successful, your funds are paid to your ETH wallet in seconds, with a remarkably low interest rate.
In terms of loan duration, NFTuloan allows users to take out loans between 1 hour and 30 days, which means you can take advantage of the long or short-term market. In addition to allowing you to get liquidity for your assets, NFTuloan also offers staking of up to 30% APR for ETH tokens. It is one of the highest APRs in the market and allows its users to profit in more than one way. The company also recently announced that it will go live on mainnet within the next 2 weeks.
Unlike some other offerings on the market, NFTfi operates more like a p2p marketplace than a direct lending provider. For those who want to lend or borrow NFTs, there is the option to search through lists.
For example, an NFT holder can build a listing for their asset and get loan offers from interested people. If they choose to accept one of the offers, they will receive wETH or DAI cash in their wallet, with the NFT locked in an escrow smart contract.
If the loan is repaid on time, the advertiser gets their item back. If the loan is not repaid, the lender can take possession of the property.
For those looking to lend NFTs, there are assets listed among some of the best collections such as Bored Ape Yacht Club and CryptoPunks that they can mine. Some users of the site have even been known to offer loan-to-own services that give them access to prime NFTs.
Arcade.xyz’s business model is based on giving its users the best of both worlds when it comes to getting deals on their NFTs. Built on the prawn protocol, users can upload their assets to its Dapp and then open a loan application. From there, interested parties can fund these requests or make their own offer.
Remarkably, Arcade.xyz allows users to upload multiple NFTs for a single loan transaction, as well as encapsulate data. If a user does not want to go through the process of opening a loan application and dealing with different offers, they can visit Arcade’s OTC desk who will help them with personalized assessments or resolve any issues they may have. he might encounter during the loan process.
Ultimately, what Arcade.xyz offers is flexibility for its users in that they can either offer offers from other users or get a personalized review from the site itself. Since other users can bid on loan requests, they can make loans with a variety of cryptos.
Get your liquidity on
These days, there is no need for your crypto assets to sit idly by in your wallet. The wealth of options in the market means you can get cash for your assets in all sorts of ways.
But not all NFT lending and liquidity platforms are created equal and some might offer more flexibility and benefits than others. Although the market is full of platforms, the ones above are some of the best to choose from.