Where does the NFT go?/ What happens to the nft.The NFT goes into our escrow in the our smart contract. Once in escrow this NFT can only be released on 2 conditions:
1. The full loan amount plus interest IS repaid before the predetermined loans expiration time. If this happens the NFT will be transferred back to the wallet of the borrower.
2. The full loan amount plus interest IS NOT repaid before the predetermined loans expiration time. If this happens the NFT is transferred to the wallet of the lender. This smart contract has been audited by Hacken with a 10/10 score for security.
There is only one payout. The repayment to lender is only made at the point in time that the loan and interest incurred is repaid in full.
The platform allows individuals who hold NFT assets to unlock liquidity by borrowing against the value of their asset(s). In turn, Liqd unlocks a peer-to-peer lending opportunity for crypto holding individuals to lend capital for a set interest rate, backed by the value of the underlying NFT asset.
This is not possible as the loan plus the interest can only be repaid in full. Users can either repay in full or they can't repay at all.
In the event that the loan is not repaid, the NFT which was used as collateral is transferred to the wallet of the lender (the person who provided the liquidity).
In short, no.
The limit on the amount a user can borrow is limited to the amount of collateral they can put up to borrow liquidity. The more collateral, in this case NFTs, the more you can borrow.
The platform allows individuals who hold NFT assets to unlock liquidity by borrowing against the value of their asset(s). In turn, Liqd unlocks a peer-to-peer lending opportunity for crypto holding individuals to lend capital for a set interest rate, backed by the value of the underlying NFT asset.
If you cannot find an NFT in your wallet. here is a simple workaround
Ensure that you have connected with the wallet that holds the NFT you are looking for.
Then paste this link https://app.liqdnft.com/asset/ into the address bar of your browser and affix the contract address of the NFT you are looking to use as collateral.
e.g
Only verified collections on Opensea and collections which have been manually approved by Liqd can be used as collateral for the loan.