NFT use cases go so far beyond expensive and unique profile pictures. Large lending institutions are beginning to recognize this as well.
NFTs have sort of become digital trading cards on steroids for outsiders looking in. But we’re beginning to see they are much, much more than that. As the applications of NFTs become more obvious, companies are going to need NFT specialists to advise them.
.@NexoFinance, the leading regulated institution for digital assets, is hiring in Sofia, remote!
⚡️ DeFi Strategist
⚡️ NFT Degen
Apply now 👇https://t.co/HBVMMQ8nys
— Cryptocurrency Jobs (@jobsincrypto) January 3, 2022
Nexo is already beginning to look for people fluent in NFTs. Also, this is just one example of a lending platform branching out into NFTs. Let’s take a look at this job offer and consider why Nexo and others may be branching out.
What is Nexo?
Home of the largest and most trusted CeFi lending institutions on the web, Nexo has 3M+ users worldwide. Nexo has been operating since 2018. They have 40+ Fiat currencies available across 200+ jurisdictions and have processed $50 billion in transactions.
Nexo states their vision as the financial future being tokenized on chain:
“We see a future for the financial world where all assets are tokenized on-chain and people have efficient ways to transfer or manage their funds.”
If you aren’t beginning to see the connection yet, allow me to explain why Nexo, one of the largest CeFi Lending platforms is looking for an “NFT Degen”.
NFTs As Collateral Loans
What is the use case for NFTs with Nexo? Take a look at some ways financialization can happen with NFTs. The most interesting is the idea of using NFTs as collateral loans.
NFTfi is the best example of this. They have seen USD $40M in loan volume to date.
🎉 Closing the year with $40m in loan volume on https://t.co/jFQ7k6JHd1.
We're super proud to share this achievement with each of you establishing the #LiquidityRevolution at NFT x Finance.
— NFTfi.com (@NFTfi) December 30, 2021
NFTfi allows users to borrow using their ERC-721 tokens as collateral. When a user locks an NFT into the platform, other users can offer loans. Once accepted, the platform closes the NFT into a smart contract and freezes it until either:
- Loan paid in full, with APR%
- The duration of the loan runs out
At this point, the NFT is either returned to the original holder, or the lender can collect the NFT.
Nexo, DeFi Lending Platforms and NFTs
As NFT adoption increases, and more money flows into this ecosystem we’ve created, the whales will want their piece of the profits. These whales are the lenders, and lenders are always looking for new ways to lend.
Also, with the insane and actually fairly stable, values we’re seeing NFTs go for, there’s really no reason to think they can’t be used as collateral.
They are true digital assets. We are beginning to see the value and applications of these assets increase in recent months. We can see that Nexo is looking for NFT specialists as well. As NFTs begin to be accepted as true assets with use cases other than profile pictures, look for more lending institutions to get involved.
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