“You pick an NFT from your inventory and you input the [loan] parameters you’re looking for. You might say, I have an NFT. I think it’s worth $5,000. I want to borrow $2,000 against it, and I’m willing to pay 3% over a 30 day period. And if [a lender is] comfortable with the offer, they are free to fund that loan. Then lenders either get the loan paid back or they get the collateral [NFT], and the counterparty can’t do anything hostile. It’s all trustless and decentralized.”
Source: https://www.coindesk.com/business/2022/04/11/michael-levy-how-to-turn-your-nft-into-a-loan/?utm_medium=referral&utm_source=rss&utm_campaign=headlines