With the future of NFTs and its well-needed utility lingering right around the corner, it is a no-brainer to have a way to use your NFTs in such a way that, it no longer stays idle in your wallet, but rather can be used smartly to generate passive income by bridging the NFT and DeFi world.
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.
The valuation of an NFT however, may not need to be speculative all the time, consider financial-based NFTs, whose intrinsic value is determined by on-chain verifiable data (for example NFT LP tokens, Gaming Items, Virtual Lands & Metaverses, etc.).
PawnSpace allows for the collateralization of any ERC-721 compliant NFT or multiple ERC-721 NFTs of the same collection in order to take out potential loans against them. We are driven by a “let the market decide” approach and intend to keep the platform open for any NFT to be listed on the platform. The “bid-and-ask” approach adopted by the platform conforms to this same notion.
Lock NFT -> Place an Order -> Get Offers -> Approve Offer & Receive funds -> Pay Back and Retrieve NFT/ Default and Lose NFT.