The last month after the mint of y00ts, we saw a good influx of volume in Solana NFTs even though we were in a bear market phase on a macro level. Magic Eden touched 6 figures in their daily volume numbers and did almost a 4x from their bottom.
Speaking of this month, October has generally been the most bullish month historically and I hope this tradition follows this year as well. And to start the month we have a pretty unique and innovative project going for mint in the space.
You have seen intellectuals calling Jpegs a “Digital Asset” which has a value attached to it. And now since it's an asset, there should be a way to take a loan by putting it as collateral. Well, sharkyfi is building a platform where NFT holders like you and I will be able to put our NFTs as collateral and take a loan against it.
The mint information about the project is as follows:
Cost: 2.9 $SOL (WL)
Time: 4 pm UTC
Let’s talk about how the platform works:
So firstly as a lender, you have to find the answers to three questions:
- Which NFT would you think will work as perfect collateral against the money you are going to provide to the borrower
- How much money would you like to offer for that NFT? This answer can also be found out by identifying the amount you would like to pay to get that particular NFT in your wallet.
- For how long you would like to loan out the money?
Now as a borrower you must find the answers to these questions:
- Which NFT of yours would you like to take a loan against
- How much money would you want as a loan and for how long?
- The interest rate you are okay to pay for the amount taken as a loan.
Now two conditions may happen after a loan has been taken out against collateral
The borrower pays the loan amount in full with interest and gets his NFT back.
Both parties are happy as they got what they wanted before the trade was executed.
The borrower doesn't pay the loan amount and it has been identified as a bad debt.
Now, in this case, the NFT will move to the lender’s wallet and he/she will be the owner of that NFT.
This might bring one more question to your mind if I as a borrower wants to put my NFT as collateral, would I lose access to the DAO of the NFT Project and will I lose all my holder's benefit till the loan is paid?
The answer is NO. The borrower will be the owner of the NFT for the whole duration and will be able to receive all the benefits he was receiving before.
For such a utility-driven project I never expect a great pfp-worthy NFT. But sharkyfi has done a good job in this aspect as well. The art is simple, clean and very likeable.
The project has been in the space for quite some time now and even though they don't have that many reactions in their discord announcements the overall sentiment around the project is a lot more positive than most of the hyped mints that took place last month.
One of the reasons for that is the project has sold out around 50% of the supply in presale.
To conclude, I would say that this is one of the most useful utilities that is needed in the space and I believe there will be a lot of users who want to use the platform.
The engagement and the sentiment around the project are also positive and the presale numbers show that if you have a whitelist, you should mint the project but to be on the safer side make sure you analyse the demand before pulling the trigger.
As always DYOR.
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