How to Put an NFT on Loan on Sqwid: A Simple Guide
Why loan an NFT? People loan NFTs when they need to borrow an amount of money, like a regular loan, except instead of a bank loan with an institution, it's an NFT with a creator.
NFTs (Non-Fungible Tokens) have revolutionized the art and digital asset world, offering unique ownership experiences. But did you know that you can put your NFT on loan? In this guide, we'll explore the process of loaning your NFT and how it can benefit both collectors and artists.
Why loan an NFT? People loan NFTs when they need to borrow an amount of money, like a regular loan, except instead of a bank loan with an institution, it's an NFT with a creator. And like regular loans, when the duration of the loan expires, you pay back to the loan to the lender. If you can't repay, the lender keeps the NFT.
Also, putting an NFT on loan not only unlocks new opportunities for collectors but also provides liquidity to NFT owners. It allows them to leverage the value of their NFTs without selling them outright. As the NFT market continues to evolve, lending platforms are becoming instrumental in expanding the possibilities and utility of NFT ownership.
How to put an NFT on loan on Sqwid
To put an NFT on loan, follow these simple steps. First, get yourself a Reef EVM wallet and a Sqwid profile! Next, connect your Reef EVM wallet to Sqwid and select the NFT you wish to put on loan. Get one below!
- Reef chain extension
- Reef extension account for Mainnet
- Bind EVM address here
- Get a profile on Sqwid
- Select the NFT on Sqwid
Once you're logged in, you can see the NFT and all the respective data to it. In the bottom left corner you can see "Available" including "Create Loan". Here, you will be able to create the loan. Choose "Create loan".
Now, Sqwid will request some data: Loan Amount, Payback Fee, Number of copies and Duration. You will also see information about Service Fees. Right now, they're 2.5%
Once you're ready, you sign the transaction and your NFT loan is complete! And once it's complete, you'll be able to see the time period, the payback fee, and loan amount. Make sure to double-check it's available and everything has gone through!
Putting NFTs on loan is a great way to borrow and make money! It offers a mutually beneficial arrangement for both lenders and borrowers, without having to go to a bank. It also provides additional income for NFT owners and temporary access to coveted NFTs for borrowers. If you own valuable NFTs and want to explore new avenues for maximizing their potential, consider putting them on loan through reputable lending platforms.
Still need some help? See the step-by-step tutorial here.
Sqwid App
Sqwid App is an advanced NFT marketplace with an attractive UI and some radically distinctive features like loans against NFTs, support for files up to 100 MB, using IPFS for file storage, the lowest commissions, custom royalty splits, and more! With such features, Sqwid is highly competitive against many popular NFT marketplaces.
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Reef Chain
Reef is an EVM-first blockchain designed to make Web3 accessible for the next billion users. Reef offers high scalability, affordable transactions and utilizes Nominated Proof of Stake, extensible EVM, and on-chain upgradability. Reef is the future blockchain for NFTs, DeFi, and gaming. It can easily accommodate the needs of the future of Web3 development. Reef is an ideal blend of old and new, a trait that makes it eternal and timeless. 🐠 Making Web3 accessible to the next billion users!
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