FODL giving away $1M of Bored Ape Kennel and Yacht NFTs to winners

• FODL, a decentralized leverage trading platform, is attempting to change. As it began to investigate use cases such as accepting NFTs as collateral, it realized it could most likely assist its traders in getting a head start.

• Fold giving away approximately $1 million in Bored Ape Kennel Club (BAKC) and Bored Ape Yacht Club (BAYC) NFTs. This equates to 24 BAKC NFTs and 1 BAYC NFT.

• It’s all part of a competition in which FODL traders earn raffle tickets by staking at least 1,000 FODL tokens between February 14 and April 30.

NFT giveaway

• Every month, the platform will award additional tickets to the top five traders on its platform, as well as reward influencers who promote the platform on social media. The winner of the (mystery) BAYC NFT will be announced after all 24 BAKC NFTs have been given away via drawing.

NFTs, or unique tokens that represent ownership of digital assets, have recently made a big splash in cryptocurrency and pop culture.

Celebrity collectors of the BAYC NFTs include Paris Hilton, Eminem, and Steph Curry. The BAYC has produced two official offspring collections, the BAKC and the Mutant Ape Yacht Club (MAYC).

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BAKC NFTs currently has an estimated minimum value, or floor price, of approximately 8.6 Ethereum, or $27,000. The floor price for BAYC NFTs is around 100 ETH ($316,000).

NFTs are one of Ethereum’s most important subsectors, accounting for $25 billion in total sales volume last year. It’s become as important as Defi, a set of blockchain-based protocols that allow people to exchange assets, obtain loans, and even take on risks.

Flash loan

Flash loans are frequently used to take advantage of arbitrage situations, in which an asset trades at different prices across platforms; it is a type of trade in which a large sum of money can be borrowed, used, and repaid all in the same transaction. The flash loan is used in this case to obtain additional leverage beyond the principal.

FODL understands the concept of risk. Users can make leveraged trades on the decentralized platform. On FODL, this means that traders can invest more money for potential gains by borrowing money via a “flash loan” from AAVE or Compound to increase the amount they’re trading with.

Risks are higher, but the potential rewards are higher as well. If things do not go as planned for a trader, they may consider selling their NFT.