NFT DeFi: Lend And Borrow eGold And Other Elrond Network Assets Using Non-Fungible Tokens Collateral Via Stater
We have started a collaboration with Stater, a lending and borrowing platform that enables using NFTs as collateral. We will work to integrate the Elrond blockchain into their platform and enable users to operate with assets issued on our Mainnet.
Non-Fungible Tokens have shown tremendous potential to capture value. Using that value as collateral as a means to tap into liquidity without parting with an asset is the next logical step.
Stater has built a platform that enables NFT owners to put them up as collateral and ask for loans. Lenders can use information such as NFT historical value and additional context information about assets to help them make informed decisions.
Stater smart contracts handle the entire process, from facilitating loans to acting as escrow and executing bad loans.
“We are firm believers that NFTs will play an important role in creating new mechanisms for value creation, capture, and retention, in business verticals that go beyond art and entertainment. We are happy to work with Stater and enable anyone to tap into the value of NFTs issued on Elrond and pursue new DeFi opportunities.” said Beniamin Mincu, Elrond Network CEO.
“A Layer 1 protocol with tokens natively embedded into it is a real game-changer. Elrond token transactions are super fast and inexpensive, which will greatly contribute to the Stater user experience” said Bogdan Baiceanu, Stater Founder and CEO.
The collaboration is important for the Elrond ecosystem because it leverages our unique Elrond Standard Digital Token design to amplify NFT utility and value and expand DeFi opportunities available on our mainnet.
Elrond is the internet-scale blockchain, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 15,000 transactions per second (TPS), with 6-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
Stater is a P2P lending and borrowing platform that allows users to leverage their NFT assets and have access to liquidity while still retaining ownership of their digital assets. We provide value to previously latent capital, unlocking wealth within digital assets and providing a new source of money creation. Our platform connects borrowers and lenders in a fully decentralized manner and integrates multiple chains, such as Ethereum, Polygon, Binance Smart Chain, and Elrond.
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