The discussion was initiated by Mr_aave, who proposed the idea of using NFTs as collateral on Aave and sought suggestions on pricing and liquidation systems¹. Toad pointed out that the topic of tokenised commodities as collateral on Aave had been previously discussed, but not extensively².

In response, Mr_aave suggested a decentralized auctioneer system, where the value of an NFT could be determined by oracles based on various parameters. The NFT owner could then request an equivalent amount in a special NFT stablecoin, which could be used to borrow other coins³. However, Donzo expressed concerns about the liquidity of NFTs, especially during a market downturn, and suggested the need for a system like NFTX to commoditize NFTs⁴.

KriptoHayat voiced skepticism about the proposal, warning about the potential for creating fake value in the NFT market and suggesting that it might be too early to introduce NFT loans⁵. The discussion concluded without a clear consensus, indicating that the idea of using NFTs as collateral on Aave is still a topic of debate within the community.