As the market has taken a turn for the worst throughout 2022, ways to make money in the market have significantly decreased, but new opportunities present themselves on a daily basis.
NFTs (non-fungible tokens) are digital assets stored on a blockchain. They are unique and cannot be replaced with a different asset. NFTs are becoming increasingly popular due to their ability to represent digital art, collectibles, and even digital real estate. As the demand for NFTs grows, so does the need for platforms that offer NFT lending and borrowing.
One of the most exciting aspects of NFTs is their ability to be lent and borrowed in a secure and transparent manner. This allows users to take advantage of the potential earning opportunities that come with NFTs, and platforms like Sharky.fi are leading the way in providing these services. This means that users can lend and borrow without having to rely on a third party to mediate the transaction, and without having to worry about their funds being stolen or misused. This makes Sharky.fi and platforms like it an ideal opportunity for those looking to earn crypto through NFTs.
Amongst the most attractive features of Sharky.fi is its wide range of NFTs that can be lent and borrowed. The platform supports a variety of popular NFTs, including assets like DeGods, y00ts, and SMBs. Not only does this mean that users can easily access a wide range of assets to borrow and lend against but they can go one step further in their strategy to hedge themselves against the volatility the market is experiencing.
By offering loans on popular NFT collections, lenders stand to gain high-yield, short-term earnings while exposing themselves to the NFT asset at a lower cost if the borrower defaults. Lenders could then sell the NFT on the market, keep the profit and repeat the process.
Borrowers also can use this service as a hedge if the collateral (NFT) falls below the loan amount by forfeiting the NFT and potentially rebuying it at the new lower price. Also if the borrower thinks the cryptocurrency will fall in value within the timeframe of the loan, they can also trade the asset into stables and trade back again before the loan is due and pocket the difference.
Sharky.fi and NFTfi are two of the leading NFT lending and borrowing platforms. These platforms allow users to borrow and lend NFTs in a secure, decentralized environment. With Sharky.fi, users can create loan contracts, set interest rates, and manage their NFT loans. NFTfi has a similar offering but also provides an additional feature that allows users to set their own collateral requirements and interest rates.
Of course, there are a number of risks that come with lending and borrowing. It's worth paying attention to LTV (Loan to Value) amounts. High LTV increases the risk to lenders and as a very small decrease in the value of the NFT means it could fall below the loan value, increasing the likelihood of defaults. Low LTV increases the risk of financial loss for borrowers as the value of the NFT, as if they default, the value of the NFT will have a significantly higher value than the loan amount.
As usual DYOR and this is definitely NOT financial investment.
😊🤟😉 Good luck and stay SAFU 😊🤟😉