NFTfi launches Earn Season 1: Promoting responsible NFT lending
Cape Town, South Africa, 15 May 2023, Chainwire
NFTfi, a leading NFT lending platform, has launched the next phase of its loyalty program NFTfi Rewards. IN Earn Season 1users can be rewarded with exclusive reward points for borrower-friendly loans and responsible lending behaviour.
The NFT area is growing rapidly, and healthy credit markets are fundamental to overall growth. NFTfi’s Earn Season 1 reward structure is designed with this in mind, to incentivize responsible NFT lending and contribute positively to the overall NFT ecosystem.
Stephen Young, co-founder and CEO of NFTfi says: “We believe that NFT lending is a crucial part of the future of the NFT space and we are committed to fostering a healthy and non-predatory lending environment through our new loyalty program.”
The principles for calculating points are as follows:
- Only repaid loans give points: Aims to incentivize lenders to carefully manage default risk via conservative LTVs, and borrowers not to take on excessive debt they may not be able to repay.
- Larger and longer loans give more points: Aims to motivate lenders to give borrowers flexible access to different loan sizes and loan lengths.
- Loans with a lower interest rate (APR) give the most points: Aims to motivate lenders to provide borrower-friendly interest rates and risk-adequate LTV as a consequence.
Earn points are earned by repaying an eligible loan. When you take out a new loan, the associated Earn points can be seen under “unsecured points” in the NFTfi Rewards cockpit. If the loan is repaid, these points become “secured points”.
The NFTfi Leaderboard shows unsecured Earn points (at the start of a loan) and secured Earn points (at repayment). The 500 wallets with the most secure points at the end of Season 1 will receive a multiplier of 2.5x max. on their final balance sheet.
NFTfi is committed to rewarding real users, not launderers. The program disincentivizes wash loans through various measures, including no points for loans with APRs below 2%, no points for loans with a duration of less than 3 days, and no points for related wallets.
Earn points are non-transferable and cannot be redeemed at this time. They only reflect the level of loyalty of NFTfi users. Certain persons, such as US residents, other US persons and persons located in the US, are not eligible to participate in the NFTfi Rewards loyalty program.
Earn season 1 is just the beginning of a long and exciting #NFTfiSommer. NFTfi has many surprises planned for all NFT collectors out there. For more information, check the Earn Points cockpit and FAQ section.
NFT lending is a fast-growing market, with the global NFT market expected to reach US$13.6 billion by 2027, according to MarketsandMarkets. NFT loans provide benefits such as liquidity, which allows NFT holders to use their assets as collateral for loans. It also helps tackle issues such as the lack of traditional financing options for NFT holders and the need for a healthy credit market in the NFT space.
Investing in loans involves inherent risk, and the value of NFTs can be highly volatile. Users should carefully consider risk tolerance and investment objectives before taking out a loan.
NFTfi.com is a decentralized peer-to-peer lending platform that enables NFT holders to borrow ETH, USDC and DAI cryptocurrency, secured by their non-fungible tokens (NFT). The platform is non-custodial based and built on the Ethereum blockchain, where smart contracts facilitate secure and transparent transactions directly between borrowers and lenders. NFTfi provides a new way for NFT holders to unlock the value of their assets and access liquidity, while allowing lenders to earn interest on their funds. Since the first loan in May 2020, users have traded over $400 million on NFTfi smart contracts.
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