DeFi borrower uses luxury watch-backed NFT as collateral for a loan
A nonfungible token (NFT) collector shared the story of how a decentralized finance (DeFi) loan was collateralized through a luxury watch and was facilitated with an NFT representing the property. On July 11, pseudonymous DeFi project consultant CirrusNFT explained how a user was able to obtain $35,000 from another user by utilizing an NFT that represented a physical item as collateral for the loan. According to the exec, a user sent out a Patek Phillipe high-end watch to 4K Protocol, an escrow company that deals with NFTs backed by physical items. The company then returned an NFT that represents ownership of the watch. Patek Phillipe watch used as collateral for DeFi loan. Source: Arcade.xyzThe NFT was then noted on the DeFi financing protocol Arcade. After noting the item, lenders pitched their offers to the borrower. The user then accepted the very best loan offer they could discover. Following this, the NFT was sent out to an escrow wallet, where it would remain up until the loan was paid completely or if the customer defaulted. The NFT will be granted to the lending institution if the debtor stops working to pay the loan. It can then be burned to declare the watch. CirrusNFT described that users can lend and borrow with total privacy through this procedure. Lenders and debtors do not require to send their names to each other to go through the process. In addition, the executive thinks that this enables people access to more global liquidity, which might use more competitive rates. Related: Blue chip collaterals assist support NFT lending: ParaspaceA community member expressed positive sentiments about the Web3 lending procedure, tweeting that the story stimulated the interest of their father, who called it “interesting.” Neighborhood member sharing their thoughts on the matter. Source: TwitterWhile some invited the new method of loaning and loaning, others think that its really central and is including NFTs where its not necessary. Collect this post as an NFT to maintain this moment in history and show your assistance for independent journalism in the crypto space.Magazine: Web3 Gamer: GTA 6 crypto rumors, Dr Who/Sandbox, Thai tourist NFTs evaluate
On July 11, pseudonymous DeFi project adviser CirrusNFT explained how a user was able to obtain $35,000 from another user by utilizing an NFT that represented a physical item as collateral for the loan. Following this, the NFT was sent to an escrow wallet, where it would remain till the loan was paid in full or if the customer defaulted. Collect this article as an NFT to preserve this moment in history and reveal your assistance for independent journalism in the crypto space.Magazine: Web3 Gamer: GTA 6 crypto rumors, Dr Who/Sandbox, Thai tourist NFTs evaluate