As a curator or creator of a large NFT collection, your passion for the craft has built a vibrant ecosystem of valuable digital assets. Yet, the traditional setup may limit your collection's growth and value.
Enter NFTY Finance. With its trailblazing "Loan Automatic Market Maker"(LAMM) model, NFTY Finance offers a pioneering platform for NFT collection owners to unlock robust revenue streams and safeguard their community’s needs.
Championing Collection Owners through Autonomous Lending Desks
NFTY Finance enables you, as a collection owner, to establish your very own 'Lending Desk.'
You have the reins from there, deciding which currency as well as NFT collections to lend against, setting desired interest rates, loan durations, and loan-to-value (LTV) ratios. These parameters are not set in stone and can be fine-tuned in response to market trends and your risk profile, providing you with unrivaled control and flexibility.
Consider an NFT collection with a floor price of 10 ETH. In traditional scenarios, holders might be compelled to sell NFTs at floor prices or turn to 3rd party DeFi protocols for loans.
Neither of these alternatives benefits you, the collection owner. But with NFTY Finance, you provide a lending solution to your holders, ensuring all loan revenue stays within your collection's ecosystem with minimal management.
Reimagine Defaults: A Profitable Flip
In conventional lending, loan defaults are viewed as a negative event. With NFTY Finance, this paradigm shifts. If you lend 80% of an NFT's market value and the borrower defaults, you acquire the NFT collateral, valued at more than 20% your intial loan. This flips the script, turning potential losses into profitable opportunities.
Transparent Ownership: Multi-Signature Wallets
Each Lending Desk on NFTY Finance is represented by an ERC-721 token, meaning a multi-signature wallet can own it. This feature allows for multiple stakeholders to receive profits and update lending parameters directly, fostering a democratic, inclusive, and secure environment for managing the Lending Desk.
Exploring Revenue Possibilities
Running your lending desk on NFTY Finance is akin to operating a virtual pawnshop, with enticing potential returns. Let's break down the numbers:
- You initiate a lending desk with 1000 ETH.
- Against each of your 10 ETH NFTs, you issue loans at 80% of their value, translating to 8 ETH per NFT.
- With an interest rate of 30% over 90 days, each loan accrues 2.4 ETH in interest.
- If 5% of loans default, you gain the full value of the NFT (10 ETH) as collateral, compensating for the loss in interest income and providing extra profit from the NFT's market value.
In practice, this scenario would generate around 286 ETH in interest income and an additional 12 ETH from defaulted loans, resulting in total earnings of approximately 298 ETH. This attractive situation would achieve a net return of nearly 29.8% over just three months.
Final Thoughts: NFTY Finance – Unleashing the Potential of NFT Collections
NFTY Finance unlocks an all-new path for NFT collection owners to amplify their collections' value, deliver liquidity to holders, and generate impressive revenue streams.
It's time to seize the day, set up your Lending Desk, and propel your NFT collection into new realms of growth and profitability.
As exciting as the NFT lending landscape may be, remember that it also involves risks. The volatility of the NFT market and the dynamic nature of loan parameters can influence your outcomes. Always conduct thorough research and consider seeking advice from financial professionals before making any significant lending decisions.