NFTfi Launches Earn Season 1: Promoting Responsible NFT Lending
Cape Town, South Africa, May 15th, 2023, Chainwire
NFTfi, a leading NFT lending platform, has launched the next phase of its loyalty program NFTfi Rewards. In Earn Season 1, users can get rewarded with exclusive reward points for borrower-friendly loans and responsible lending behavior.
The NFT space is growing rapidly, and healthy credit markets are fundamental to its overall growth. NFTfi’s Earn Season 1 reward structure has been designed with this in mind, to incentivize responsible NFT lending and contribute positively to the overall NFT ecosystem.
Stephen Young, Co-Founder and CEO at NFTfi says: “We believe that NFT lending is a crucial part of the future of the NFT space, and we're committed to promoting a healthy and non-predatory lending environment through our new loyalty program.”
The principles by which Earn Points are calculated are the following:
- Only repaid loans earn points: Aims at motivating lenders to carefully manage default risk via conservative LTVs, and borrowers to not take out excessive debt they might not be able to repay.
- Larger and longer loans earn more points: Aims at motivating lenders to provide borrowers with flexible access to various loan sizes and loan durations.
- Lower interest rate (APR) loans earn the most points: Aims at motivating lenders to provide borrower-friendly interest rates and risk-adequate LTVs as a consequence.
Earn Points are earned by repaying an eligible loan. Upon taking out a new loan, the associated Earn Points can be seen under “unsecured points” in the NFTfi Rewards cockpit. If the loan gets repaid, these points turn into “secured points”.
The NFTfi Leaderboard shows unsecured Earn Points (upon starting a loan) and secured Earn Points (upon repayment). The 500 wallets with the most secured points by the end of Season 1 will get a multiplier of 2.5x max. on their final balance.
NFTfi is committed to rewarding real users, not washlenders. The program disincentivizes wash loans through various measures, including no points for loans with APRs below 2%, no points for loans with a duration of fewer than 3 days, and no points for related wallets.
Earn Points are non-transferable and not redeemable at present. They merely reflect the loyalty level of NFTfi users. Certain persons, such as US residents, other US persons, and persons located in the US, are not eligible to participate in the NFTfi Rewards loyalty program.
Earn Season 1 is only the beginning of a long and exciting #NFTfiSummer. NFTfi has many surprises planned for all NFT collectors out there. For more information, check the Earn Points cockpit and the FAQs section.
NFT lending is a rapidly growing market, with the global NFT market expected to reach $13.6 billion USD by 2027, according to MarketsandMarkets. NFT lending offers benefits such as liquidity, enabling NFT holders to use their assets as collateral for loans. It also helps tackle issues such as the lack of traditional financing options for NFT holders and the need for a healthy credit market in the NFT space.
Investments in loans carry inherent risks, and the value of NFTs can be highly volatile. Users should carefully consider their risk tolerance and investment objectives before taking out loans.
NFTfi.com is a decentralized peer-to-peer lending platform that enables NFT holders to borrow ETH, USDC, and DAI cryptocurrency, secured by their non-fungible tokens (NFTs). The platform is non-custodial and built on the Ethereum blockchain, where smart contracts facilitate secure and transparent transactions directly between borrowers and lenders. NFTfi provides a new way for NFT holders to unlock the value of their assets and access liquidity while also enabling lenders to earn interest on their funds. Since its first loan in May 2020, users have transacted over $400 million on the NFTfi smart contracts.