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Introducing Loafty an efficient marketplace for NFT collateralised loans

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Introducing Loafty an efficient marketplace for NFT collateralised loans

January 25
23:39 2022 is an efficient marketplace for NFT collateralized loans. The platform offers USDT, ETH & SOL loans with applicants’ crypto assets (NFTs) acting as collaterals.

NFTs continue to take the crypto world by storm and have grown to become veritable tools in the financial and money lending fields. Put into perspective, a $1.42M loan secured by Autoglyph #488, an NFT produced by CryptoPunks’ creators, Larva Labs, was approved on Oct. 28. It’s the largest NFT-backed loan ever, according to Stephen Young, the founder of NFTfi, a peer-to-peer lending protocol that facilitated the transaction.

Several platforms for collateralized liquidity lending with crypto assets have gained prominence during this period. One of such is Loafty. While most other platforms like NFTfi operate with a peer-to-peer lending protocol, Loafty employed a different approach. On Loafty, the platform offers the loan while the loanee uses a verified Nft as collateral.

Speaking about their services, an executive of the platform said: ”We’ve simplified the process. Now anyone can apply for a loan in less than 2 minutes and get the loans in less than an hour. Just enter the amount you want as a loan, then select the art you want to use as collateral and submit. We will verify the originality of the art you want to use as collateral, find the floor price and approve the loan for 50% of whatever the floor price is. Yes, the days of selling NFT to get cash are over. We let you borrow funds against your NFT so you can get a loan while continuing to hodl.”

Once the loanee repays the loan, Loafty will swiftly transfer their asset back to them. However, like every other loan platform with spelled out terms and conditions, when users default, the platform will take possession of the NFT presented as collateral.

Loafty has stressed that borrowers’ assets are safe during the loan period. The platform has utilized Smart Contracts of the NFT to act as an escrow. This is intended to automatically execute, control, or document legally relevant events and actions according to the terms of your agreement with the platform. A team with expertise from multiple projects involving wrapped NFTs built the contract while multiple external developers in private audits validated it.

Loafty($LFTY) will be making it’s way into the crypto market with a token launch, $Lfty will launch on the Binance smart chain. Part of the Funds generated from presale, will be used to launch the loan platform as initial loan capital.

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