This article is for general information purposes only and isn’t intended to be financial advice.
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If you're a holder of a verified asset on OpenSea, you can use it as collateral to obtain a loan on Liqd. With Liqd, a peer-to-peer lending platform, you can unlock liquidity without selling your NFTs. Here's a step-by-step guide on how to get a loan on the platform:
Step 1: Verify Your Asset on OpenSea
Before you can use your asset as collateral on Liqd, you need to make sure that it's verified on OpenSea. This will allow Liqd to recognize your asset and offer it as collateral.
Step 2: Connect Your Wallet to App.Liqdnft.com
To begin the process, you need to connect your wallet to App.Liqdnft.com. Once you've connected your wallet, select "My Assets" from the dropdown menu in the upper right corner of the page.
Step 3: List Your Asset as Collateral
From your assets page, find the asset that you want to use as collateral and select it. At the bottom of the asset's page, click "List this asset as collateral" to initiate the loan process.
Select the unlisted NFT you want to borrow against by clicking on it. You will be redirected to a more detailed page of the selected NFT.
Click on the Get Liquidity button.
Step 4: Accept Liqd's Terms and Conditions
A popup will appear with Liqd's terms and conditions. Read through them carefully and select "Accept & Continue" to proceed.
Step 5: Configure Your Loan Terms
After accepting the terms and conditions, you can configure your loan. Select the cryptocurrency you'd like to borrow (wBTC, wETH, DAI, USDT, or USDC) from the dropdown menu, then input the loan amount, duration, and APR you're requesting.
Step 6: Allow Liqd to Access Your NFT
If the loan terms meet your expectations, select "Allow Liqd to Access your NFT" to initiate the loan request. You'll need to grant explicit permission for Liqd to interact with the NFT you're using as collateral.
Step 7: Get Liquidity
After approving the request, select "Get Liquidity" to post the asset to the Liqd site. You'll need to sign the transaction to allow Liqd's smart contracts to remove the asset from your wallet and place it in escrow.
Step 8: Update Your Loan Terms (Optional)
Before your loan is fulfilled, you can update the terms of your requested asset loan by navigating to your assets page and selecting "Update Terms."
Step 9: Repay Your Loan
Once your loan is fulfilled, you'll need to repay it (with interest) in the same cryptocurrency that you borrowed it from. You cannot negotiate new loan terms or repay any loans that have been defaulted on.