https://www.youtube.com/watch?v=kGMWXn17u5A

Also on:

Apple Podcast

Spotify

Video Description

Host: @mrjasonchoi, may hold assets discussed. Not financial advice

The total market-cap of NFT has hit $18 billion in 2022 - but most of these value are illiquid and NFTs sit idly in wallets.

NFTFi unlocks the liquidity of these NFTs by allowing owners to take NFT-collateralized loans. Till date, they have facilitated $128 million over 7000 loans.

In this episode, NFTFi co-founder, Steven Young shares with us:

• Why is unlocking NFT liquidity necessary and how can it help floor prices?
• What are the risks involved for lenders and borrowers?
• Why is NFTFi’s peer-to-peer model the most optimal for NFT-backed loans?

------------ Sponsors -------------

PARASWAP is the best place to trade your tokens and get the best price in DeFi today. Get started on paraswap.io/blockcrunch

COINFLEX is a crypto exchange where anyone can be a market maker via its simple AMM+ product. Explore yields up to 800% on Coinflex’s easy-to-use platform:

https://coinflex.com/amm

----------- More Resources -------------

Guest Steven Young's Twitter:

https://twitter.com/stephen_yo

NFTFi's Website:

https://www.nftfi.com

Blockcrunch Twitter:

https://twitter.com/theBlockcrunch

Jason Choi’s Twitter:

https://twitter.com/mrjasonchoi

Substack:

https://jasonchoi.substack.com/

------------ Disclosures -------------

Disclaimer: Jason Choi is a General Partner at Spartan Capital, a subsidiary of The Spartan Group. All opinions expressed by Jason and podcast guests are solely their own opinions and do not reflect the opinion of The Spartan Group and any of its subsidiaries

Follow Along Guide

Host: Jason Choi

Guest: Co-Founder of NFTfi, Stephen

Background of NFTfi founders (0:27 - 4:16)

• What was both founders doing before Crypto?
• How did they get into Crypto?
• How did idea of NFTfi come about?

The beginning of NFTfi (4:17 - 6:52)

• What was the NFT scene like back in early 2020?
• What’s the difference between
  • Using NFTs as collateral for a loan
  • Borrowing the actual NFT?
• How did the founders decide between the 2 different market opportunities?

NFTFi now (6:53 - 21:19)

• What NFT projects are whitelisted - able to be used as collateral for loans?
• For each of the different loan periods (7, 14, 90 days), what are some examples of reasons for borrowing?
• On Loan APRs,
  • What’s the consideration when people set up the loan APRs?
  • Does Steven expect rates to go higher or lower over time?
• On Liquidations,
  • How does it happen?
  • What’s the difference between Peer-2-PEER (P2P) style loans like NFTfi & AMM/Peer-2-POOL style loans on liquidations?
  • What is the reason that NFTfi went with Peer-2-PEER style loans?
• How is a liquidity provision DAO providing liquidity for loans using a bot?
  • How does this actually help to reduce APR over time?

Whitelisted NFT Projects (21:20 - 24:49)

• What are the consideration factors for whitelisting NFT projects to be eligible as collateral on loans?
• How does being whitelisted actually act as a flywheel for the project i.e become more valuable?

Competition from Peer-2-POOL / AMM models & other projects (24:50 - 32:13)

• What is the fundamental problem of Peer-2-POOL / AMM model for NFT loans?
• Why are AMM pools more suitable for fungible tokens (ERC-20) loans?
• On comment that Peer-2-Peer loans not being scalable because its inefficient,
  • Why does Steven disagree with this?
• What benefits does AMM pool have over Peer-2-Peer pools?
  • How can Peer-2-Peer pools eventually attain these benefits too?
• Since games like NFTWorlds have already built in-house capability for loan of actual game assets,
  • Is it possible that they also build in-house mechanism for NFT-collateralised loans?

Types of Lenders & Borrowers (32:14 - 36:26)

• How does NFTFi find the liquidity provider DAOs?
• What are the different types of lenders active on NFTfi
  • How will this change in the future?
• Why is the number of borrowers almost x2 the number of lenders?

Future of NFTfi (36:27 - END)

• On performance so far,
  • How have they performed over the years?
  • What is the size of NFT loan volume vs entire NFT market?
• What is the tailwind that will help NFTfi scale beyond billion dollars in loans?