On the ARTSY Lending and borrowing platform, users can extend loans to each other against NFT’s as collateral. This means our platform adds instant extra utility to all NFT’s featured. Users who wish to lend fungible assets to gain yield on those assets set the terms of the loan and the NFT type they demand as collateral. The borrowers may browse at leisure for loan deals on NFT’s they own and accept a loan that suits them. When the loan period is over, the borrower has either paid the lender back plus interest or forfeits their NFT to the lender. The lender can then keep the NFT or choose to sell it to be made whole. Our Lending and Borrowing platform features the following:
A quick and easy categorization and search function with a focus on user experience.
An optional contact system with a possibility for extensions if mutually agreed by the lender and the borrower.
Optional public profiles for lenders with stats on their leniency towards extensions, so borrowers can make personal choices on whom to deal with.
Freedom for the lenders to choose the amount they care to lend on a certain NFT category.
An ever-expanding variety of NFT series, that are categorized into three tiers based on trading volume and price stability, with tier one being premium collateral tier three being sufficiently safe to be allowed on the platform. The actual rates are fully explained in its own chapter.
Low interest on premium NFT’s and higher interest on riskier ones. Flat interest increase based on the loan duration.
For safety, the interest is paid up front by withholding the interest from the borrowed amount, both on the initial loan and on possible extensions.
The protocol takes less interest than the lender and that take gets split 50/50 with the community through the ART token.