Strip Finance is building a collateralized NFT borrowing and lending marketplace initially launching on Binance Smart Chain. The platform will enhance liquidity in the NFT market by providing users with an option to retain ownership and yet be able to derive liquidity.
Although the market is on the ebb now, NFTs are venturing into unexplored territories with an array of use cases. As the celebrity-induced allure of NFTs fades, industries are looking into how NFTs can shape the future of ownership in a transparent, trustless ecosystem.
Unlike Bitcoin or Ether, you can’t exchange an NFT for another. They can be transferred, though. The ownership history will be recorded on the Blockchain. The most exciting part about NFTs is that anything can be converted into an NFT — art, gaming assets, music, and even a tweet
Why Strip Finance
• Access to Capital
Enabling NFT collectors to borrow against their assets as collateral on fair interest rates. Strip Finance aims to provide an NFT liquidity solution by building a marketplace for collateralized NFT borrowing and lending. Its founders conceptualized the idea in response to the global explosion of interest in digital ownership coupled with the current, antiquated state of the art and collectibles markets, whose auction house practices have hardly changed for centuries.
• Bidding & Pools
Allowing liquidity providers to participate either through direct bidding or pools. This is new to everyone. Personally I really like the idea of NFT and I believe this is one of the only assets that are most suitable for auction.
• Marketplace
Both lenders & borrowers can opt for either pool or P2P marketplace. Strip charges 1% of the asset value to facilitate the borrowing/lending. It also charges 10% from the interest borrower pays. In case of liquidation, the lender has to pay the 10% of the sale proceeds.
