Thread by @Defy_Trends

[1] An #NFT loan is the NFT-backed credit that allows NFT holders to put their #NFTs/collections for a mortgage in exchange for cryptocurrencies or #fiat currency

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[2] #DeFi platforms that support #NFT loans allow holders to borrow funds and set terms without a central authority.

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[3] If you are a borrower, you can expect to get a loan of ~50% of the #NFT value, with interest rates ranging from 20%-80%, depending on the popularity of the particular NFT.

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[4] Lenders estimate the collateral's fair value by looking at the $NFT's past performance, sales history, and the floor price of similar #assets

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[5] If both parties agree on the terms, the #NFT is transferred from the borrower's wallet into an escrow account. This is how a smart contract facilitates the loan.

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[6] If you want to learn more about the #crypto market - make sure you sign up for our newsletter👇
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