NFT-Backed Lending Market Rises, USD 1.4M Borrowed With an NFT as Collateral
cryptonews.comNon-fungible tokens (NFTs) are increasingly being used as collateral against loans. Recently, the possibly largest ever such loan was issued for USD 1.4m using the crypto lending platform NFTfi, with the Autoglyph 488 NFT as collateral.
Autoglyphs are an “on-chain” generative art collection made up of 512 assets on the Ethereum (ETH) blockchain. The collection is created by Larva Labs, known far and wide for its pixelated digital avatars dubbed CryptoPunks.
Using NFTs as collateral works like all other forms of collateralized loan, only with a slightly higher interest rate. For instance, annual lending rates against punks, which are arguably the most valuable NFTs, are generally between 15% to 20%.
In the case of the loan secured by Autoglyph
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