NFTY Finance
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Borrowing

Section covering the borrowing portion of NFTY Finance.
NFTY Finance allows NFT holders to gain access to instant liquidity through borrowing. As NFTs are inherently illiquid collectibles, NFTY Finance is solving this issue by providing a platform for NFT holders to get liquidity for their NFTs through escrowed collateralized loans.

Connecting a Wallet

Upon connecting your wallet on the NFTY Finance platform, you will then be able to fully utilize the platform. Make sure you connect your wallet that has the specific NFTs you want to borrow against (Note: NFTY Finance currently only supports Ethereum at launch).
Once you have a connected wallet you will have an "account page" that will house all of your active and expired loans and liquidity shop features like loans pending approval and shop management.

Opening a Borrow

After connecting a wallet, you will be able to navigate to the "borrow" section on NFTY Finance. From there, you will be navigated to a screen showcasing all of the liquidity shops within NFTY Finance.
After finding a specific liquidity shop that supports your NFT collection you are wanting to borrow against, you will navigate to the liquidity shop and begin to request a loan.
When requesting a loan against a liquidity shop, users will need to fill out a form with some key features that can be broken down and found below:
  • Which NFT that the liquidity shop supports to borrow against
  • The loan amount that the user is requesting from the liquidity shop
  • Which loan duration the user wants to select to pay the loan back in (30, 60, 90 day options)
  • Inserting an email address that will be used to send loan updates and notifications
After the form has been filled out, you will be able to finalize the terms and send a request for the loan. The loan will need to be manually accepted by the liquidity shop owner, so make sure to check back to NFTY Finance to see the status of your loan.

Paying the Loan Origination Fee

Upon having your loan accepted, you will receive a notification of your acceptance and will then need to pay a loan origination fee. After paying the fee, the loan will be accepted and you will receive the funds requested within your wallet.
Note: The 70% portion of the loan origination fee will be locked up upon fee payment and will allocated back to the borrower upon final completion of the loan payment.

Paying back the Loan

Within your profile, you will see all of your active and expired loans. From there you will be able to pay off any currently active loans. Upon successful payment completion of a loan, the portion of the loan origination fee for the borrower will be distributed back to your wallet, as well as the NFT held that was borrowed against.

Borrower Notes

Upon opening a loan, you will receive an NFT referred to as a "borrower note." These borrower note NFTs represent the loan from the borrowers side and can be traded to outside parties to transfer the loan. Once the borrower note NFT is transferred to another user, the loan that the borrower note NFT represents will also be transferred to that user, and you will no longer be held accountable for the payback of that specific loan.
Last modified 1yr ago