Lending & Borrowing NFTs

Enter the world of NFT finance with our new Collateral feature

Published in

DigiCol

3 min readNov 26, 2021

We’re proud to be the very first comprehensive NFT marketplace to support the Collateral feature. It is a huge step forward for us all into the world of NFT finance.

1. What is Lending & Borrowing?

Now, at DigiCol, you can use your NFT as a collateral to borrow tokens (ETH, USDT, DGCL, etc.) from another user.

You can also do it the other way around, offering to lend tokens to the NFT owners using their NFTs as a collateral.

The NFT owner must repay the borrowing amount plus the agreed interest before the loan period ends. Otherwise, the NFT will be transferred to the tokens lender. This process is executed by our smart contract in a trustless and decentralized way.

2. How does it benefit me?

This feature opens up a lot of possibilities.

Lending & Borrowing allows you to solve your liquidity issue without having to sell your NFTs. The idea is very similar to mortgaging a house for liquidity.
As a token lender, you can earn interests through lending out tokens. And if the borrower is not able to repay the loan, you will get the NFT.
You may also see this as a feature to sell your NFT, but with an option to buy back at a slightly higher price in a set period of time.

3. How much do we charge for this feature?

FREE. To celebrate the launch, we rebate 100% of the fee incurred by the platform to our users.

*However, you will still have to pay the gas fees for miners.

4. How to lend tokens at DigiCol?

Proposing an offer to NFT owner, as a token lender

5. How to borrow tokens at DigiCol?

Listing an offer to token lenders, as an NFT owner

6. What are the contracts supported?

For now, all NFTs listed on DigiCol.io are supported. Contracts Sandbox, Cryptopunks, and ENS are also supported. We’re working very hard to integrate more contracts such as BAYC and expect to support them in Q4 this year.

Twitter: https://twitter.com/DigiColofficial

Medium: https://medium.com/@digicol

Substack: https://digicol.substack.com

Telegram: https://t.me/digicolofficial

Telegram News Announcement: https://t.me/digicolnews