NFT as collateral is coming - Sentiment

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Mr_aave proposed using NFTs as collateral on Aave, suggesting a decentralized auctioneer system for valuation, and a special NFT stablecoin for borrowing. However, concerns were raised about NFT liquidity and potential for fake value creation, leaving the proposal as a debated topic within the community.

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.

Posted 3 years ago

Last reply 2 years ago

Summary updated 2 months ago

Last updated 05/12 01:14