Don’t Sell, Collateralise; Says NFT Liquidity Platform Strip Finance
October 06 2021 - 9:19AM
NEWSBTC
Strip Finance, a Collateralised NFT & DeFi Liquidity Protocol,
is putting NFTs for better use by collateralising them for
stablecoins and providing greater liquidity. A next-generation NFT
platform called Strip Finance is making it possible to
collateralise Non-Fungible tokens while still maintaining ownership
of the assets, taking DeFi and NFTs to a whole new dimension.
Created by veteran crypto entrepreneurs, Strip Finance allows users
to lend their NFTs for stablecoins allowing them to attain
liquidity without selling or leveraging the value of holdings to
mint more NFTs. Moreover, Strip Finance allows lenders to earn
interest on the platform and have a chance to acquire defaulted
NFTs at discount prices. Non-fungible tokens (NFTs) appear to have
exploded this year. NFT sales have increased more than eightfold to
$10.7 billion in the third quarter of 2021 because of the ongoing
craze for NFTs. Despite this boom, most NFTs are becoming worthless
with no better use cases. NFTs are usually difficult to utilize
productively once purchased, in contrast to fungible tokens, which
may be staked, lent out, or otherwise put to work to produce yield.
Strip Finance, on the other hand, resolves this significant issue
by giving a better use case, of NFT collateralisation, in which
lenders may lend their NFT and borrow stablecoins. Having access to
stablecoins will enable owners to access liquidity for a variety of
purposes, including exploring further investment possibilities,
personal expenditures, or market hedging. It can even be exchanged
for fiat, utilised in DeFi protocols, or used to purchase more
NFTs. Understanding Collateralisation – The Strip Finance way The
startup is developing a platform via which anyone who owns a
desired NFT may use it as collateral to borrow money. The asset
pricing data on the Strip Finance platform will be collected
straight from NFT markets like Opensea, Rarible, and others, with
no adjustments made by Strip Finance. The platform, which will
support Ethereum Chain, Matic Chain, Binance Smart Chain and Solana
ecosystem will allow borrowing funds without any mediators, similar
to other DeFi protocols. Strip Finance will follow the basic
principle of the lending/borrowing market for its NFT
Collateralisation. Accordingly, Strip Finance aims to bring
lenders and borrowers together on the platform where if someone
wants to borrow, they should first list their NFT on its
marketplace. Moreover, Lenders could then begin expressing their
willingness to lend against that particular NFT with extra
information such as loan term duration, payment frequency, and
liquidation terms to keep both parties informed. Furthermore, NFT
holders get stablecoins without selling off their NFTs allowing
them to attain liquidity without selling or leveraging the value of
holdings while still having the ownership of their prized assets.
For the lenders, it allows them to earn interest on the platform,
and have a chance to acquire defaulted NFTs at discount prices.
Initially, the platform will offer loans in the form of the USDT
stablecoin and aims to continue expanding its ecosystem with new
features. Strip Finance: A platform with potential NFT is not just
about digital art anymore, it’s much more than that. With DeFi and
NFT going mainstream one can expect a disruption in the traditional
world of finance. In addition, platforms like Strip Finance that
aggregates liquidity on the platform through its decentralised P2P
and curated pools approach to allow capitalization of NFT assets
will add to the evolution of this industry. In August, the company
secured about $500,000 in a seed round from Old Fashion Research,
Nothing Research, Tenzor Capital, Block0, Shima Capital, Lancer
Capital, and J10M Capital. Moreover, Strip Finance’s advisory board
includes Siddharth Menon, COO of WazirX; Jaynti Kanani, CEO of
Polygon; Tamar Menteshashvili, Solana’s Ecosystem and Growth; and
Yida Gao, GP of Shima Capital. Strip Finance: Thinking beyond Art
NFTs Strip Finance intends to take NFTs to the next level, and with
support from renowned businesses and individuals, there are good
opportunities to build a good momentum on Binance Smart Chain and
Solana. Furthermore, Strip Finance’s founders are seasoned crypto
entrepreneurs with backgrounds in some of the most well-known
technology companies, including Ankr, Bithumb, ConsenSys, Bitfinex,
Prometheus Labs, and Coldsstack. The team believes that providing
means of collateralising NFTs and providing liquidity brings value
to the NFTs. Similarly, they believe that the transparency and
legitimacy of NFTs will be restored by financially backing the NFTs
Going forward, Strip Finance’s plans include foraying into debt
financing of crypto projects by allowing project tokens minted as
NFTs to be used as collateral on the platform.