PawnSpace is a decentralized NFT-collateral lending platform, which primarily functions in a P2P “bid-and-ask” model. This approach allows PawnSpace to not only allow any NFT to be collateralized but also allows the market to decide the valuation of the NFT, and reach a mutual agreement on its valuation, just like in a traditional NFT marketplace.
NFTs are growning to be an alternative asset class and the introduction of NFT Financialization has been gaining traction. PawnSpace acts as a platform that allows an individual to financialize their NFTs by locking it up as collateral. This allows for users of the platform to stay away from instant liquidations due to leveraged over-collateralized positions on traditional ERC20 lending protocols. PawnSpace however complements the use of existing DeFi platforms as borrowed funds may used to earn yield on different protocols. PawnSpace acts a NFT focused DeFi primitive that allows access to capital to whomsoever seeks it.
PawnSpace is a completely decentralized protocol since its inception and was designed with decentralization in mind, with every action on the protocol taking place on-chain. This move encouraged to build on Polygon first for its cheap and fast transactions on-chain.
Governance of the protocol will also be progressively decentralized as we move forward. More information will be released as time proceeds and the protocol evolves.