What Is NFT-Fi?
NFT-Fi is the combination of NFTs and DeFi, where NFTs are used to increase the size and influence of markets and financial institutions. It offers a decentralized alternative to traditional finance and allows for new use cases for NFTs. The key benefits of NFT-Fi are increased liquidity, expanded financial utility, and better risk mitigation.
RWAs or Real-World Assets
RWA projects tokenize real-world assets and offer sustainable yield through regenerative agriculture, bringing physical assets on-chain, tokenizing bankruptcy claims, and buying and selling real estate on-chain. RWAs have the potential to open up a multibillion-dollar market.
Lending Aggregators
Lending aggregators allow you to unlock NFT liquidity by lending them. These platforms combine various NFT marketplaces, providing new options and opportunities. Some active projects in this space include Lendz.loan, Skillet.ai, and AAA.is.
NFT Rentals
NFT rentals enable you to rent out your NFTs and earn extra revenue. Borrowing NFTs also allows for temporary funds. Active projects in this space include reNFT, Double Protocol, and RentaFi.
Liquidity Scaling
Projects in the liquidity scaling space offer real yield from automated NFT-backed lending strategies. These platforms focus on sustainable and manipulation-free yield earning. Some active projects include Metastreet, Protectorate Protocol, and Spice Finance.
Valuations
Valuation platforms provide data-driven knowledge for NFT collectors, offering pricing insights and in-depth market analysis. Some players in this space include DeepNFTValue, Upshot, Nabu, NFTbank, and NFT Valuations.
NFT Marketplaces
NFT marketplaces allow for easy buying, selling, and trading of NFTs. There are various marketplaces available on different chains, such as OpenSea on Ethereum, Blur on Ethereum, Magic Eden on Solana, Polygon, Ethereum, and Bitcoin, and Stargate on Cosmos.
Derivatives/Options
Derivatives and options platforms allow for managing and hedging NFT risks. Some platforms in this space include nftperp, Wasabi Protocol, and Tribe3.
Fractional Liquidity
Fractional NFTs and on-chain index tokens like ETFs offer options for sharing exposure and reducing risks. Platforms active in this field include NFTX, nealthy, Muse DAO, szns, and Unicly.
Closing Thoughts
NFT-Fi is an exciting space that combines NFTs with DeFi, offering new possibilities for liquidity, financial utility, and risk mitigation. Tokenization of real-world assets and the various NFT-Fi tools discussed provide opportunities for diversification and better liquidity options in the NFT space. Explore the different projects and platforms to make the most of this emerging trend.
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