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NFTfi stands at the intersection of DeFi and NFTs, offering a robust infrastructure for unlocking capital in the historically illiquid world of non-fungible tokens. At its core, NFTfi provides a permissionless protocol that allows NFT holders to access loans in wETH, DAI, or USDC by collateralizing their digital assets. This opens the door for collectors, investors, and artists to gain financial flexibility without having to part with their collections.

Borrowers begin by connecting their Ethereum wallet, selecting NFTs from approved collections, and setting preferred loan parameters such as loan amount, duration, and interest rate. Lenders can browse these listings, submit loan offers, and earn interest if the loan is successfully repaid. If not, the NFT is transferred to the lender. All activity is secured by NFTfi’s audited smart contracts, offering confidence in a completely non-custodial setup.

A major differentiator for NFTfi is its peer-to-peer model. Unlike automated liquidation systems seen in peer-to-pool platforms, NFTfi loans never auto-liquidate. This gives borrowers a full repayment window without the risk of being liquidated due to market volatility. Lenders, on the other hand, have the potential to acquire NFTs below market value if a borrower defaults—resulting in both liquidity generation and potential upside.

NFTfi V3 introduced new functionality including Flexible Loans, where borrowers repay only the prorated interest used rather than full-term interest. Additionally, the NFTfi Aggregator brings a dashboard experience that centralizes lending activity across different NFTs and collections. NFTfi also supports underfunded offers, enabling lenders to place loan offers without fully funding their wallet at the time—boosting capital efficiency.

The protocol is governed by a long-term vision: becoming a decentralized, user-owned public utility. NFTfi Rewards is an early step toward this, granting OG points to early users and building toward a tokenized ecosystem. Meanwhile, features like Gnosis Safe support, bundle loans, and a thriving Ambassador Program reflect NFTfi’s deep ecosystem development.

Key alternatives in the NFT lending sector include BendDAO (peer-to-pool), and Arcade (similar P2P). However, NFTfi distinguishes itself through its clean UI, stable infrastructure, and loan lifecycle transparency. With no borrower fees, no forced liquidations, and highly customizable terms, it remains a leader in NFT finance.

NFTfi offers a powerful set of features and advantages that redefine how users can extract value from NFTs:

• Peer-to-Peer Lending Protocol: NFTfi enables borrowers and lenders to negotiate terms directly, without relying on pooled liquidity or oracles.
• Non-Custodial & Transparent: Loans are executed through fully audited smart contracts with no custody by the platform and no centralized control.
• Zero Auto-Liquidations: Borrowers retain the right to repay up to the final moment of the loan term—floor price fluctuations have no impact.
• Flexible Loan Types: V3 allows for prorated interest payments via “Flexible Loans,” offering increased borrower flexibility and cost control.
• Lender Capital Efficiency: Lenders can now submit underfunded offers and only need to fund wallets when an offer is accepted.
• Exclusive NFTfi Rewards: OG points and future benefit eligibility for active users engaging in the lending ecosystem.
• Bundle Loans & Private Offers: Borrowers can collateralize multiple NFTs at once and even conduct deals privately for discretion and trust-building.

NFTfi provides a seamless onboarding process whether you’re a borrower or a lender:

1. Visit the Website: Head to nftfi.com and click on “Open dApp.”
2. Connect Your Wallet: Connect your Ethereum wallet (e.g., MetaMask) to interact with the NFTfi protocol. Your NFTs will appear in your dashboard.
3. List Your NFT: Click “Get a Loan” and choose the NFT to list. Set desired loan amount, interest rate, and duration. Sign the message to list it.
4. Receive Offers: Wait for loan offers from lenders. Choose the best one and accept it to initiate the loan—your NFT enters escrow, and you receive funds.
5. Repay or Default: Repay the loan with interest before the due date to reclaim your NFT. If you default, the NFT transfers to the lender.
6. Explore Lending: As a lender, browse collateral listings under “Lend,” submit offers, and earn yield. You can filter by collection or offer to bundles.