◀️Borrowing
Borrowing against your large-cap NFTs is simple on Liquified using our streamlined platform.
How to Borrow on Liquified
Start by connecting your MetaMask wallet with the Liquified app. After that:
Select the NFT that you're looking to borrow against
Move the selection meter left-right to indicate the loan amount that you are seeking
Read the loan terms - this specifies how many NFTs are being deposited, the amount of ETH being borrowed and the interest rate that you agree to pay on your loaned amount
Note: taking out a loan on an NFT on Liquified will allocate that NFT as collateral on our platform. This means until the loan is fully paid, you will not be able to transfer the NFT to a new address or put it up for sale on an exchange like OpenSea. Our secure smart contract means that your asset will be kept safe until your loan is closed or you enter a liquidation process.
Supported Currencies
Currently and for the foreseeable future, the LIQUIFIED platform only allows borrowing ETH from NFTs. This is because ETH is the de facto currency for most large-cap NFT projects, and the simplicity of issuing only ETH against NFTs reduces the overall risk from market volatility on our loans.
What Happens to my NFT?
Your valuable NFT will be kept in our secure non-custodial smart contract during the duration of the loan. Our brilliant technical team has spent many hours perfecting the code for this smart contract - so rest-assured that it is in good hands.
Rewards
Any significant rewards, either in the form of currencies or derivative NFTs (PFP or other) issued by the NFT creators will be paid to you at a specified later date.
Our smart contracts are set up in such a way that any potential rewards paid to the ETH address that your NFT originated from can continue to be accumulated in the same address; meaning you don't have to wait until the rewards arrive at a later date.
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