Nord NFT Loans V2 Launch | Are you ready to utilize new features of NFT Loans?
In January, We launched the Nord NFT Loans- A p2p NFT Loans platform for artists and art collectors of NFTs. We know the Nord Vikings community is eagerly waiting to see many NFT Loans on our platform. We are also working towards onboarding new users. Before we attract new users, we wanted to test the NFT Loans with a few interested users to understand the user requirements and expectations. After discussing with a few users, We realized a few updates are required to make the platform more attractive to potential users.
We’re excited to introduce the new features with Nord NFT Loans V2.
We’re introducing the following features in Nord NFT Loans:
- Pro-rata bid option
- Multi-token support for lenders
- Improved user experience
- The ERC 1115 compatibility with Nord NFT Loans V2.
Nord NFT Loans V2 key updates:
Pro-rata and Fixed interest bid option for Lenders:
We’re introducing a Pro-rata interest bid for the lenders to provide borrowers and lenders with a unique option to create a loan contract between them.
In a Fixed interest rate bid, borrowers need to pay the entire interest amount to the lenders even if they pay back the loan amount well within the loan period. In the Pro-rata option, the lender provides money to the borrower on a pro-rata basis which means the borrower only needs to pay back the loan amount with the proportional interest rate required.
Alex is ready to take a loan from the Bob on Nord NFT Loans platform against his NFT. Let’s say the agreed amount for the NFT Loan between Alex and Bob is $1000 at a 10% interest rate for 10 weeks. Let’s say Alex can pay the amount back with interest within 5 Weeks.
Following are interest need to be paid by Alex to Bob:
Fixed interest rate option:
1000*(10/100)=$100 interest amount payable to Bob
Pro-rata interest rate option:
1000*((10)*(5/10)*(1/100) )= $50 interest amount payable to Bob
Benefits of Pro-rata interest option:
- A lender can bid with the Pro-rata option at a higher interest rate. The higher interest rate with the Pro-rata option is also attractive for the borrower. If a Borrower is confident of paying back the amount before the agreed loan period, then the pro-rata bid from a Lender is more attractive to them.
Multi-Token support for lenders:
We aim to accommodate thousands of tokens to Nord NFT Loans in the future. We’re introducing multiple token support in Nord NFT Loans V2 for lenders. Now, lenders can provide money with their current token holdings to offer loans to NFT holders.
Tokens standards like ERC-20 and ERC-721 require a separate contract to be deployed for each token type or collection. This limits certain functionality by the nature of separating each token contract into its permission address. To keep up with the best practices, we are making Nord NFT Loans ERC-1155 compatible.
One of the core principles of the Nord Finance platform is to provide the best user experience to investors. We’re following our core principle and bringing you new UX improvements. Now, You can lend and borrow easily and intuitively.
Do you own an NFT? If yes, Check out the following guide to start taking NFT Loans on our Nord NFT Loans platform. Utilize your NFT for your investment, business and personal use without selling them.
About Nord Finance
Nord Finance is an advanced decentralized financial ecosystem designed to simplify DeFi investing by bringing key features of traditional finance to the DeFi ecosystem. Nord Finance is built on Ethereum Network. Multichain interoperability of Nord Finance powers a plethora of financial primitives, which constitute savings, advisory, loans against crypto assets, Investment, and Fund management. Nord Finance is creating innovative ways for everyone to generate wealth with Blockchain Technology.
Follow us to become a part of Future of Finance: