What Does An Open Money Market for NFT Looks Like?
GM from xBank Team. In the following posts we will reveal more details of xBank Protocol, our product philosophy and market intuitions behind them.
As we have mentioned in previous posts, the current money market of NFT lending is not inclusive, making it niche and fails to fit in the growing needs of retail users. An implicit prerequisite of entering NFT money markets is to own an NFT, which dramatically shrinks its user coverage and misdirects products to the way of building sophisticated mathematical liquidation models for keeping balance between money efficiency and risk.
Removing this prerequisite will be an ambitious way to explore the open money market for NFT. In other words, making the money market accessible to those who don’t own an NFT is the key point (making the money market accessible to those who need money to sweep/own more NFT takes the same logic).
The question is, how to lend money to those who don’t own NFTs. Looking into previous practices of decentralized prime brokerages, for example deltaprime.io, we can find that lending to an established close ecosystem with necessary restrictions via several types of access control makes it very flexible to cover more types of borrowers. In simple words, lend money to consumers and lock the bought item into restricted contracts. (Discussion on problems introduced by transferring ownership of NFT assets will be discussed in following posts) This constructs an over-collaterized lending to consumers/sweepers who are looking for lower entry barriers with the loan against bought items. With an open money market, we can expect a better liquidity of NFT collections (cause we have a lower barrier to buying one).
(Caption: How deltaprime.io works. Noted that the protocol design of is different in terms of how to raise capital)
Making the money market more accessible is one of the steps we must take and a sustainable financial infrastructure will always contribute to the business growth of the current market.
We’re building the protocol layer privately for now, but we’ll share more info on how to get early access soon. We’re ecstatic for others to join us on this journey.
Before this, xBank had been dedicated to building Dapps with excellent user experience and had onboarded more than 180k users with our Portal App. With xBank’s Portal App, users are now able to on/off-ramping, purchase NFTs with Visa and manage assets frictionless like shopping online. xBank is an active consumer web3 platform leading invested by IOSG Ventures with amazing partners like Hashkey, Fenbushi, Infinity Ventures Crypto, Headline and more, helping us to be the most adopted Web3 platform by Web2 users.
Official Website: http://xbank.plus/
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