NFT lending has emerged as a huge development in the world of Web3, offering NFT holders a new way to access liquidity without selling off their assets. As the NFT lending market continues to evolve, new platforms have emerged to meet the demand of NFT holders looking to unlock their invested capital.
These platforms are not just changing the game for digital art and collectibles; they’re also paving the way for other tokenized assets to enter the lending space. For instance, platforms like GrtWines, which offers tokenized fine wines, has already seen users leverage their wines to obtain loans and unlock their invested capital.
The Top 7 NFT Lending Platforms
In this guide, we’ll explore the top 7 NFT lending platforms of 2024, comparing their features, supported collections, and terms to help you navigate this exciting new frontier in decentralized finance.
1. NFTfi: Pioneering Peer-to-Peer NFT Lending
NFTfi stands out as one of the most popular peer-to-peer NFT lending platforms in the space. It offers services for over 150 NFT collections, making it one of the most diverse platforms in terms of supported assets. Notable collections available on NFTfi include popular series like Bored Ape Yacht Club, VeeFriends, and World of Women.
One of NFTfi’s key features is its flexible loan structure. Borrowers can receive loans in either wETH or DAI, providing options to suit different financial needs. The platform allows lenders and borrowers to negotiate terms directly, which can lead to competitive rates based on market conditions and the perceived value of the NFT collateral.
NFTfi has implemented a fee structure that favors borrowers. While the platform doesn’t charge any fees to those seeking loans, it does take a 5% cut of the interest earned by lenders on successful loans. This approach may attract more borrowers to the platform, but it could potentially impact the returns for lenders.
Key points about NFTfi:
- Wide range of supported NFT collections (over 150)
- Loans available in wETH or DAI
- No fees for borrowers
- 5% fee on lenders’ earned interest
- Direct negotiation between lenders and borrower
NFTfi provides a robust platform for NFT-backed loans, offering a balance of diverse asset support and borrower-friendly policies. However, potential lenders should be aware of the fee structure when considering using the platform.
2. Arcade: Multi-NFT Wrapping for Larger Loans
Arcade, formerly known as Pawn.fi, is another notable peer-to-peer NFT lending platform with some unique features. One of Arcade’s standout capabilities is allowing users to “wrap” multiple NFTs into one wrapped token, which can then be used as collateral for a single loan. This feature enables borrowers to potentially take out larger loans compared to other platforms.
The platform supports several notable NFT collections, including Bored Ape Yacht Club, Azuki, and Meebits. Loans on Arcade can be issued in either wETH or USDC, providing flexibility for borrowers.
One of Arcade’s distinguishing features is that it allows borrowers to repay loans at any time and in full. Additionally, it’s the only protocol mentioned that enables lenders to make collection-wide loan offers, potentially reaching a broader range of borrowers.
Key points about Arcade:
- Allows wrapping of multiple NFTs for larger loans
- Supports major collections like Bored Ape Yacht Club and Azuki
- Loans can be repaid at any time
- Currently no fees for borrowers or lenders (but this will likely change)
- Loans issued in wETH or USDC
- Collection-wide loan offers available
Arcade’s unique features, particularly the ability to collateralize multiple NFTs and the flexibility in loan repayment, make it a notable player in the NFT lending space.
3. Nexo: High-Value NFT Lending for Institutions
Nexo is a lending institution that has been operating in the digital finance markets since 2018. The platform has recently expanded its services to include NFT lending, focusing on high-value NFT collections.
Nexo’s NFT lending service currently supports notable collections such as CryptoPunks and Bored Ape Yacht Club.
For qualifying NFTs, Nexo offers loans of up to 20% of the NFT’s value. Loans can be issued in ETH or stablecoins, providing options for borrowers. The loan-to-value (LTV) ratio ranges from 10% to 20%.
It’s important to note that Nexo operates as a centralized platform. This means that Nexo takes custody of the NFT collateral, which could be a consideration for some users who prefer decentralized solutions. Nexo’s NFT lending services are also processed through it’s OTC desk, so clients who wish to use the service will need to fill out a contact form and get in touch with the Nexo team directly.
Key points about Nexo:
- Focuses on high-value NFTs
- Supports CryptoPunks and Bored Ape Yacht Club collections
- Offers loans up to 20% of NFT value
- Loans available in ETH or stablecoins
- Centralized platform model
- Assigned account manager for borrowers
Nexo’s approach to NFT lending caters to high-net-worth individuals and institutional investors, offering a more traditional lending experience within the NFT space.
4. Zharta: Automated Loan Suggestions
Zharta is an NFT lending platform that stands out for its automated loan process. The platform can automatically supply the assets that support how much a user wishes to borrow, or users can select their assets across a slider grid to generate a suggested loan amount.
Zharta supports several notable NFT collections, including Bored Ape Yacht Club, Crypto Punks, VeerFriends, and World of Women. Loans are issued in ETH.
A key advantage of Zharta is its real-time processing. Once a user agrees to the terms, they can approve the quote and get their loan in real time. The platform also allows users to borrow against one or more assets or bundles from the same category.
Key points:
- Automated loan amount suggestions
- Supports major NFT collections
- Loans issued in ETH
- Real-time loan processing
- Currently there are no fees for borrowers
Zharta’s focus on automation and user-friendly features makes it a notable player in the NFT lending market.
5. BendDAO: Decentralized Liquidity Pools for NFTs
BendDAO stands out as the first decentralized peer-to-protocol liquidity platform for NFT lending. Unlike peer-to-peer models, BendDAO operates through a loan pool supported by liquidity providers. This pool offers NFT-backed loans for several notable blue-chip NFT collections, including Bored Ape Yacht Club and CryptoPunks.
One of BendDAO’s key features is that it allows NFT owners to receive loans up to nearly 40% of their asset’s floor value. This loan-to-value ratio is competitive within the NFT lending space. The platform uses blockchain “oracles” to aggregate the value of assets, ensuring fair and up-to-date valuations.
An interesting aspect of BendDAO is that lenders who supply liquidity to the loan pools receive interest-bearing bendETH tokens in return. This provides an additional incentive for liquidity providers to participate in the platform.
Key points about BendDAO:
- Peer-to-protocol lending model
- Supports blue-chip NFTs like BAYC and CryptoPunks
- Loans up to 40% of asset’s floor value
- Lenders receive bendETH tokens
- Uses oracle-based asset valuation
- Liquidity pool model
BendDAO’s peer-to-protocol model and the issuance of bendETH tokens to lenders set it apart in the NFT lending ecosystem. The platform’s approach offers a unique blend of decentralized finance principles applied to NFT-backed loans.
6. Blend by Blur: NFT Buy-Now-Pay-Later
Blend, launched on May 1, 2023, is a subsidiary of the Blur NFT marketplace and has quickly become a significant player in the NFT lending market. It operates as a peer-to-peer (P2P) perpetual NFT lending protocol, allowing users to borrow ETH using their NFTs as collateral.
The platform offers two main products: Buy-now-pay-later (BNPL) and P2P perpetual lending. One of Blend’s unique features is its fixed interest rates, which allow lenders to understand loan conditions clearly and make informed decisions.
At launch, Blend supported three NFT collections: Azuki, CryptoPunks, and Milady Maker. The DeGods collection was added shortly after, with more collections expected to follow.
Key points about Blend:
- P2P perpetual lending model
- Offers BNPL and P2P perpetual lending products
- Fixed interest rates
- Supports collections like Azuki, CryptoPunks, Milady Maker, and DeGods
- No platform fees for the first six months
7. X2Y2: Integrated Marketplace and Lending
X2Y2 is an NFT marketplace that has expanded its services to include NFT lending. While the platform is primarily known for NFT trading, its lending feature adds another dimension to its offerings.
X2Y2’s lending service operates on a peer-to-peer model, allowing NFT holders to use their digital assets as collateral for loans. This approach enables direct negotiations between lenders and borrowers, potentially leading to more flexible loan terms.
The platform supports a variety of NFT collections. As with other lending platforms, the loan-to-value ratio and interest rates likely vary depending on the perceived value and liquidity of the NFT being used as collateral.
One of X2Y2’s strengths is its integration within a broader NFT marketplace ecosystem. This integration could potentially provide users with a seamless experience between trading and lending activities.
Key points about X2Y2:
- Peer-to-peer lending model
- Part of a larger NFT marketplace ecosystem
- Supports various NFT collections for lending
- Allows NFT holders to use their assets as loan collateral
X2Y2’s entry into the NFT lending space represents a trend of NFT marketplaces expanding their services to include financial products, potentially offering users a more comprehensive platform for their NFT-related activities.
| Platform | Model | Supported NFTs | Loan Currency | Unique Features |
|---|---|---|---|---|
| NFTfi | P2P |
Bored Ape Yacht Club VeeFriends World of Women ... |
wETH, DAI |
• No borrower fees • Wide range of collections • Customizable terms |
| Arcade | P2P |
Bored Ape Yacht Club Azuki Meebits ... |
wETH, USDC |
• Multiple NFT wrapping • Flexible repayment • Collection-wide offers |
| Nexo | Centralized |
CryptoPunks Bored Ape Yacht Club |
ETH, Stablecoins |
• High-value NFTs only • Assigned manager • Broader ecosystem |
| Zharta | P2P |
Bored Ape Yacht Club CryptoPunks VeeFriends World of Women ... |
ETH |
• Automated suggestions • Real-time processing • Multiple asset bundling |
| BendDAO | P2Protocol |
Bored Ape Yacht Club CryptoPunks |
ETH |
• bendETH for lenders • Liquidity pool model • Oracle-based valuation |
| Blend by Blur | P2P |
Azuki CryptoPunks Milady Maker DeGods ... |
ETH |
• BNPL option • Fixed interest rates • Perpetual lending |
| X2Y2 | P2P |
Pudgy Penguins Bored Ape Yacht Club Meebits Azuki ... |
Not specified |
• Integrated marketplace • Direct negotiations |
Conclusion
As the NFT market continues to evolve, lending platforms will play an increasingly important role in providing liquidity and financial flexibility to NFT holders. Each platform covered in this article offers unique features and caters to different needs within the NFT ecosystem.
When choosing an NFT lending platform, consider factors such as:
- The types of NFTs you own and which platforms support them
- The loan currencies offered and their compatibility with your financial strategy
- Unique features that align with your goals (e.g., BNPL options, fixed interest rates, etc,)
- The lending model (P2P, P2Protocol, or centralized) that you’re most comfortable with
It’s worth noting that while NFT lending opens up new opportunities, it also comes with risks. Always carefully review the terms and conditions of any loan, and be aware of the potential for liquidation if the value of your NFT collateral decreases significantly.
