NFTFIPrice

(NFTFI)

NFTfi is a decentralized peer-to-peer liquidity protocol that allows NFT holders to access capital without selling their digital assets. Borrowers use their NFTs as collateral to receive loans in cryptocurrencies such as wETH, USDC, or DAI. Lenders provide the necessary liquidity and earn interest in return. The platform serves as a bridge between NFT owners seeking liquidity and yield-seekers looking for productive ways to deploy their crypto assets.

Unlike peer-to-pool lending models, NFTfi operates on a peer-to-peer basis. In this system, every loan has fixed terms agreed upon directly between a specific lender and borrower. This approach eliminates the risk of automated liquidations caused by sudden floor price drops, which are common in pool-based protocols. This structure provides users with more transparency and control over their loan agreements and collateral.

Borrowers on NFTfi do not face auto-liquidations based on market fluctuations or changes in the NFT's floor price. Because loans are peer-to-peer with fixed terms, the only risk of losing the collateral is failing to repay the loan by the agreed-upon deadline. If a borrower defaults, the lender can foreclose on the loan to claim the NFT, which then considers the debt fully settled.

NFTfi offers a competitive fee structure. Borrowers pay zero protocol fees and are only responsible for the interest rate negotiated with the lender. For lenders, the protocol typically takes a 5% service fee on the interest earned from successful loans. In the event of a borrower default where the lender claims the NFT collateral, no service fee is applied.

The $NFTFI token serves as the governance backbone for the NFTfi DAO. Users can stake their tokens to receive veNFTFI (vote-escrowed NFTFI), granting them the power to vote on protocol upgrades, fee structures, and the whitelisting of NFT collections. Furthermore, staking enables users to participate in yield boosting and earn a share of protocol revenue, incentivizing active participation in the decentralization of the platform.

NFTfi prioritizes security through a non-custodial architecture and rigorous auditing. The protocol's smart contracts have been double-audited by leading security firms ChainSecurity and Halborn. As a non-custodial platform, the protocol never takes possession of user assets; instead, they are held in secure escrow by smart contracts until the loan terms are fulfilled or the foreclosure process is initiated.