NFT series that are eligible for use as collateral on our platform are categorized in tiers. There are three tiers, aptly named tier 1, 2 and 3.
Tier 1 are blue chip NFT series that have been present for many months, have very large trading volume and a consistent floor price.
Tier 2 are NFT series from popular projects that have reasonable trading volume and no sudden drops in floor price, or they can be popular but new projects that have not proven their value retention yet.
Tier 3 are NFT series that have low trading volume and/or a fluctuating floor price.
The interest on the loan is lowest for a tier 1 NFT and progressively higher for the other two tiers. We’ve implemented this to ensure that lending against lower quality NFT series can be an attractive choice due to the higher interest that the lender will receive for their increased risk.