Liqd is unlocking the value of bluechip NFTs without selling them
Oct 31, 2022
This article is for general information purposes only and isn’t intended to be financial advice.
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Liqd is an innovative, first of its kind platform for lending and borrowing NFTs.
Liqdnft.com platform enables NFT holders to unlock liquidity by borrowing against the value of their assets and brings about a peer-to-peer lending opportunity for individuals to lend capital for a set interest rate, backed by the value of the borrower’s underlying NFT asset. Those posting their NFTs as collateral can set their own loan terms and duration, and choose whether they want to receive cryptocurrencies or stablecoins. What's more, no credit or background checks are required.
Liqd platform offers benefits for lenders too. As well as getting the opportunity to earn interest on their digital assets, they'll have a chance to acquire a blue-chip NFT at a heavily discounted price if a loan goes unpaid.
A Lending and Borrowing Model for NFT Generation
By simply posting their asset publicly on Liqd, alongside details of its value and the loan they would like to secure, borrowers have the power to select any interested lender and make a loan agreement with them for a predetermined amount, and a set interest rate. Liqd then holds the borrower’s NFT in a secure lock-up for the agreed duration of the loan.
At the end of the determined loan timeframe, borrowers will need to repay the loaned capital to the lender, with the additional interest. Should repayment fail, the borrower’s NFT will be transferred into the ownership of the lender - allowing them to acquire a blue chip NFT for a fraction of its market price.
According to the founders of the Liqd platform -
“The number of NFT holders has grown exponentially in the past two years, from approximately 460,000 in 2020 to over 4.6 million in 2022. They’re an extremely popular, and often valuable asset to hold, but have one major flaw - they’re illiquid. Liqd allows users to put their NFTs to work, by taking out a loan from a peer, backed by the value of their NFT. Put simply it’s traditional lending and borrowing model, adjusted for the NFT generation.”
Stability as a By-Product
Liqd believes the project's infrastructure will additionally help provide greater levels of stability in the wider market, helping to prevent wild swings in the valuations of top-tier tokens. Floor prices of the NFTs could become immune to huge drops, as holders would have a way of remaining part of the community without selling up.
Revolutionizing NFT 2.0 With Strong Partnerships and Side Products
Liqd has also partnered with Nabu, the machine-learning-powered valuation engine to accurately price NFT collections based on both open and proprietary data sources, including trade volumes, sales history, NFT metadata, social media hype, and more.
The team is planning to launch cross-chain opportunities with other networks, alongside instant liquidity provisioning and the launch of an NFT pass, providing a growing number of perks including transaction and system fee discounts. For example, each NFT pass will also serve as a membership ticket to one of our Alpha Discord channels enabling the members to apply for early-access/ whitelist or pre-mint spots for the upcoming crypto projects.
With some NFTs now selling for hundreds of thousands of dollars — if not millions — this new infrastructure could be the silver bullet that encourages more high-net-worth individuals to find out more about what digital art is all about. And as a growing number of big brands begin to release their very own crypto collectibles, Liqd believes it will play a tangible role in helping nonfungible tokens mature as an asset class.
Liqdnft.com is a decentralized peer-to-peer NFT lending platform that allows NFT holders to collateralize their bluechip NFTs and secure a loan, hassle-free. With Liqd, investors can unlock the actual value of their NFTs without selling them.
Balance.capital organization plays a key role in outlining Liqd’s strategic market positioning and facilitating growth, development, and integration.