NFT Lending, or NFT-based lending & borrowing, enables users to pledge their NFTs as collaterals, and lock them for loans in cryptocurrencies or fiat currency while the lenders can lend their money on the platforms and earn a return.
2. What is an asset vault?
An asset vault in RiFi NFT marketplace is a smart contract that is capable of storing one or more NFT(s) as collaterals.
3. Why create a vault?
Vaults not only serve as secure storage for one or more NFT(s) but also allow users to use one or multiple assets as collateral for a single loan. By doing that, users can save more time and reduce gas fees.
4. What is an NFT wrap?
An NFT wrap is a list of NFTs that asset owners have approved to list on the marketplace and pledge as collateral for lending.
5. How can NFT owners borrow against assets?
Users of RiFi NFT can start the process by creating their vaults and depositing NFTs into their vaults from their connected wallets. Then, vault owners can specify conditions on their NFTs, and lenders can accept or send a counter offer. A loan is successfully established if both lenders and NFT owners agree with the loan conditions.
A loan is directly guaranteed by an NFT as collateral, and the asset will be locked in our smart contract until the borrower has completed the repayment. If the loan is not paid back in time, the asset becomes available for foreclosure by the lender. After claiming the asset, the lender will take ownership of the NFT.
7. Is a borrower's asset safe during the loan duration?
Yes, definitely. Through the full loan duration, the borrower's NFT is locked under our contract and the lender cannot able to use it. Only if the borrower doesn't make a loan payment on time and the lender chooses to foreclose on the NFT will the borrower lose the asset.
8. Are there fees on RiFi NFT?
There are some fees associated with NFT lending on RiFi NFT, such as gas fees for minting vaults, depositing NFTs, and rolling over.