Best Projects to Borrow Against Your NFTs in 2022 – CryptoMode

A new trend in the billion-dollar range, some projects are now offering you the opportunity to use your NFT holdings as collateral for short and long-term loans. Are you currently considering lending on your holdings? Need immediate cash to buy more promising NFTs?

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

According to the official website, NFTuloan is a liquidity pool provider for domain names, digital art, trading cards, virtual items, playing cards, etc. This platform has cutting-edge advanced tools capable of liquidating your dormant or idle NFTs.

An intriguing feature of this NFT lending platform is the introduction of the novel peer-to-pool lending model. The peer-to-pool system eliminates interactions with users – lenders deliver tokens to a common pool of assets, and the borrower takes liquidity or tokens from that pool. A smart contract and an EVM-compatible machine manages this credit model and, to a greater extent, reduces notional claims from project developers.

NFTuloan is a pawn shop for NFTs. In less than a few minutes, you can easily use your NFTs for a short or long-term loan. Unlike other projects, NFTuloan is fairly transparent. The team integrates an “Instant NFT Estimation” mechanism that offers super-fast, transparent, fair and well-calculated valuations of your tokens.

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

advantages

  • It introduces a more competent peer-to-pool lending model.
  • NFTuloan offers a 90-day loan repayment period.
  • 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.

Disadvantages

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

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

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

advantages

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

Disadvantages

  • It only has 30% TVL.
  • It only accepts six NFT collections.
  • It’s not insured.
  • It’s not beginner friendly

According to the website, NFTfi allows users to use their NFTs for credit in a safe, secure, and anonymous manner. While NFTfi offers lenders attractive yields, the recent cases of DeFi project “carpet pulling” leave us skeptical about projects with all these lucrative and too good-to-be-true offers.

Unlike BendDAO and NFTuloan, NFTfi relies on 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 time of 90 days, NFTfi is an ideal platform.

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

advantages

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

Disadvantages

  • NFTfi only accepts 20 NFT collections.
  • It’s not insured.
  • It’s not a community project.
  • It uses the chaotic peer-to-peer lending structure.

Arcade is based on the Pawn protocol and is an infrastructure layer for NFT liquidity. Like the others, Arcade gives you the option to borrow against your holdings.

It integrates an NFT estimation calculator. Despite being an advanced platform, Arcade only accepts six NFT collections and only has 4% TVL, which is bad for such a project. Like the others, it has a payback period of 90 days.

advantages

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

Disadvantages

  • It adopts the peer-to-peer model.
  • It only has a TVL of 4%.
  • It’s not insured.
  • It is not run by the community.
  • It only accepts six NFT collections.

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

With a TVL of 32% and a payback time of 30 days, JPEG has made a list as one of the best NFT liquidity platforms.

advantages

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

Disadvantages

  • It only accepts six NFT collections.
  • It has a TVL of 32%.
  • It is not run by the community.
  • It’s not insured.

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

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Virginia C. Taylor