Wing Finance, a decentralized lending platform, has successfully launched a non-fungible token (NFT) pool, offering highly competitive APR rates. The new functionality will support the first six blue-chip NFTs.
Notably, non-fungible tokens (NFTs) continue gaining mainstream adoption, despite the current crypto bear market. Brands and notable household names such as Loius Vuitton, Gucci, Tommy Hilfiger, and Mercedes Benz are leveraging the new tech to boost their market share.
Data acquired from DappRadar confirms that NFTs trading spiked more than half a million in 2020 to 28.6 million in 2021. Despite the remarkable performance last year, there is more underlying NFT collateral that remains locked in wallets.
But interestingly, the new digital collectible pool might be the game-changer, offering a competitive APR rate. The new NFTs pool will support the six blue-chip NFTs collections, including CryptoPunks, Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), The Meebits, Azuki, and Clone X.
Despite debuting in the NFT lending pool market, Wing Finance leads in offering unique and innovative functionality to unlock NFTs value. The decentralized lending platform adopts a peer-to-pool lending mode.
The P2P lending model will allow Ether (ETH) in the asset pool to provide liquidity to the other lending pools. As a result, the user will borrow ETH assets by simply collateralizing NFTs. Suppliers will earn ETH interest from borrowers.
According to the team behind the development, all collateralized NFTs will move into the main NFT-collateral pool, where borrowers receive the corresponding functional NFT. However, NFTs lenders must pay attention to collateral value for their safety.
Since NFTs are calculated from floor prices, buyers will potentially acquire the cheapest NFTs, especially amid the recent market dump with over 20% off. Wing NFT pool will calculate the time-weighted average floor price to filter price fluctuations from OpenSea and LooksRare to optimize fairness.
The New NFT Pool Explained
The newly launched NFTs pool will give users an exclusive new method to unlock their NFTs value without necessarily auctioning them. The NFT pool allows users to borrow while setting their NFT portfolio as loan collateral.
Wing Finance now anticipates leveraging the new functionality to lead the collateralization space. Moreover, the decentralized lending platform aims to expand its market as one of the first DeFi protocols to support the lending and borrowing mechanism.
Although Wing has deployed its NFT pool on the Ethereum chain, it will eventually leverage other blockchains, such as Polygon and Solana, to become the leading credit-based and Defi platform.
Furthermore, the Wing’s decentralized autonomous organization (DAO) may also propose and vote over expanding to other additional blue-chip NFT collections. Once users join the Wing DAO, other NFT holders can vote for projects they support with WING tokens.
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Source: https://insidebitcoins.com/news/defi-lending-platform-wing-finance-rolls-out-its-new-nft-pool