Strip Finance, a Collateralised NFT & DeFi Liquidity Protocol, is putting NFTs for better use by collateralising them for stablecoins and providing greater liquidity.

A next-generation NFT platform called Strip Finance is making it possible to collateralise Non-Fungible tokens while still maintaining ownership of the assets, taking DeFi and NFTs to a whole new dimension.

Created by veteran crypto entrepreneurs, Strip Finance allows users to lend their NFTs for stablecoins allowing them to attain liquidity without selling or leveraging the value of holdings to mint more NFTs.

Moreover, Strip Finance allows lenders to earn interest on the platform and have a chance to acquire defaulted NFTs at discount prices.

Non-fungible tokens (NFTs) appear to have exploded this year. NFT sales have increased more than eightfold to $10.7 billion in the third quarter of 2021 because of the ongoing craze for NFTs.

Despite this boom, most NFTs are becoming worthless with no better use cases. NFTs are usually difficult to utilize productively once purchased, in contrast to fungible tokens, which may be staked, lent out, or otherwise put to work to produce yield.

Strip Finance, on the other hand, resolves this significant issue by giving a better use case, of NFT collateralisation, in which lenders may lend their NFT and borrow stablecoins.

Having access to stablecoins will enable owners to access liquidity for a variety of purposes, including exploring further investment possibilities, personal expenditures, or market hedging. It can even be exchanged for fiat, utilised in DeFi protocols, or used to purchase more NFTs.

The startup is developing a platform via which anyone who owns a desired NFT may use it as collateral to borrow money. The asset pricing data on the Strip Finance platform will be collected straight from NFT markets like Opensea, Rarible, and others, with no adjustments made by Strip Finance.

The platform, which will support Ethereum Chain, Matic Chain, Binance Smart Chain and Solana ecosystem will allow borrowing funds without any mediators, similar to other DeFi protocols.

Strip Finance will follow the basic principle of the lending/borrowing market for its NFT Collateralisation.  Accordingly, Strip Finance aims to bring lenders and borrowers together on the platform where if someone wants to borrow, they should first list their NFT on its marketplace. Moreover, Lenders could then begin expressing their willingness to lend against that particular NFT with extra information such as loan term duration, payment frequency, and liquidation terms to keep both parties informed.

Furthermore, NFT holders get stablecoins without selling off their NFTs allowing them to attain liquidity without selling or leveraging the value of holdings while still having the ownership of their prized assets.

For the lenders, it allows them to earn interest on the platform, and have a chance to acquire defaulted NFTs at discount prices.

Initially, the platform will offer loans in the form of the USDT stablecoin and aims to continue expanding its ecosystem with new features.

NFT is not just about digital art anymore, it’s much more than that. With DeFi and NFT going mainstream one can expect a disruption in the traditional world of finance.

In addition, platforms like Strip Finance that aggregates liquidity on the platform through its decentralised P2P and curated pools approach to allow capitalization of NFT assets will add to the evolution of this industry.

In August, the company secured about $500,000 in a seed round from Old Fashion Research, Nothing Research, Tenzor Capital, Block0, Shima Capital, Lancer Capital, and J10M Capital.

Moreover, Strip Finance’s advisory board includes Siddharth Menon, COO of WazirX; Jaynti Kanani, CEO of Polygon; Tamar Menteshashvili, Solana’s Ecosystem and Growth; and Yida Gao, GP of Shima Capital.

Strip Finance intends to take NFTs to the next level, and with support from renowned businesses and individuals, there are good opportunities to build a good momentum on Binance Smart Chain and Solana. Furthermore, Strip Finance’s founders are seasoned crypto entrepreneurs with backgrounds in some of the most well-known technology companies, including Ankr, Bithumb, ConsenSys, Bitfinex, Prometheus Labs, and Coldsstack.

The team believes that providing means of collateralising NFTs and providing liquidity brings value to the NFTs. Similarly, they believe that the transparency and legitimacy of NFTs will be restored by financially backing the NFTs

Going forward, Strip Finance’s plans include foraying into debt financing of crypto projects by allowing project tokens minted as NFTs to be used as collateral on the platform.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

234 +