NFTBank Partner Highlights Part 2 — P2Pool Lending Platforms

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NFTBank.ai

4 min readNov 14, 2022

We’re back with the second round of our partner highlights. Last week, we covered our P2P Lending partners: NFTfi and Arcade. We discussed that P2P lending allows two parties to come together and make an independent decision regarding their loan.

A similar type of lending is P2Pool except, in this case, the lenders are not individually interacting with a borrower who comes up with individual NFT valuations. Rather, the lenders provide liquidity to a common pool based on the NFT collection so that the borrowers can get an instant loan. The instant loan is possible because, unlike P2P, P2Pools generally use an agreed-upon price for an NFT collection: the floor price.

The share of the pool that each lender owns is proportional to the amount of interest that each lender gets back when the borrowers return their principal + interest.

Let’s take a look at how our partners are running their lending platforms, and what kinds of pricing information are needed from NFTBank to power these services. Introducing our P2Pool partners:

Pine
and Unlockd Finance

Pine x NFTBank

Pine is one of the first P2Pool lending platforms in the space. What’s unique with Pine is that they allow the lenders to open up “segregated” pools so that lenders do not “mix” capital with other lenders. This means that each lender can select the NFT collection they want to lend to, then set their own personal loan terms for their newly created pool of lendable funds.

For borrowers, this means they have options to choose from, within the same NFT collection, different loan terms, and loan pool amounts. This P2Pool platform gives lenders the freedom to set terms without negotiations and borrowers the ability to access instant liquidity from a selection of lending terms that fit their risk profile.

Then, where does NFTBank collaborate with Pine?

For Pine, the amount of LTV of the collateral heavily depends on the floor price of the specific NFT collection, and this floor price is provided by NFTBank.

NFTBank’s floor price is aggregated from major secondary marketplaces like OpenSea, LooksRare, and X2Y2. This helps take care of any differences across major markets and represents a more stable floor price as a whole for protocols like Pine to use.

Aside from providing our floor on Pine, Pine has also integrated into NFTBank’s discover page so that users can see which NFT collections are eligible for an instant loan on Pine. We have also included this integration on NFTbank’s mobile app so that users can get an instant loan, on the go.

Unlockd Finance — coming soon

Another P2Pool partner that we are working with is Unlockd Finance. Unlockd Finance hasn’t launched yet but they already have a massive community.

Unlockd is primarily known for its presence in the gaming space and they are gearing up to become the lending protocol for gaming-related protocols like guilds, to help unlock millions of dollars locked up in gaming. If you’re a gamer, you won’t want to miss this.

NFTBank x Unlockd Finance

While P2Pools are known to use floor prices to value the collateral, Unlockd uses our estimate price model to set the loan terms for borrowers. Borrowers are now able to fully unlock the value of the NFT they own rather than being tied to the collection floor. Not to mention, they would be able to borrow instantly based on the P2Pool setting that the protocol runs on.

Unlockd Finance is just getting ready to launch and here is what they have to offer for its users:

Use the utilities of the NFTs you lock up as collateral
Borrow LTVs up to 85%!
A grace period for borrowers when liquidation events occur

NFTBank in the P2Pool Landscape

NFTBank has always been about supporting NFT finance, especially P2Pool lending platforms like Pine and Unlockd Finance. We are continuously exploring and solving different pain points as we are eager to meet new partners with that we can work to explore the space together. If you’re one of them, reach out to us on our socials!

About NFTBank

NFTBank is an NFT portfolio management tool and valuation engine, allowing users to make informed decisions about their NFT portfolio and enable advanced DeFi use cases. NFTBank’s ML-powered NFT valuation engine covers 5000+ projects with high accuracy.