- NFTfi has launched the next phase of its loyalty program called NFTfi Rewards.
- Earn Season 1 of the program incentivizes responsible NFT lending and offers exclusive reward points for borrower-friendly loans and responsible lending behavior.
- The program aims to promote a healthy and non-predatory lending environment in the rapidly growing NFT space, contributing to the overall growth of the NFT ecosystem.
NFTfi, a leading NFT lending platform, has launched NFTfi Rewards, the next phase of its loyalty program. Users can earn exclusive reward points for borrower-friendly loans and responsible lending behavior during Earn Season 1.
The NFT space is rapidly expanding, and healthy credit markets are critical to its overall expansion. NFTfi’s Earn Season 1 reward structure was created with this in mind to encourage responsible NFT lending and positively contribute to the overall NFT ecosystem.
According to Stephan Young, co-founder, and CEO of NFTFI, “We believe that NFT lending is a crucial part of the future of the NFT space, and we’re committed to promoting a healthy and non-predatory lending environment through our new loyalty program.”
Earn Points are calculated using the following principles:
- Only repaid loans earn points, which encourages lenders to carefully manage default risk through conservative LTVs and borrowers to avoid taking on excessive debt that they may be unable to repay.
- Larger and longer loans earn more points, encouraging lenders to offer borrowers flexible loan sizes and durations.
- Loans with lower interest rates (APRs) earn the most points, encouraging lenders to offer borrower-friendly interest rates and risk-adequate LTVs as a result.
Earn Points by repaying a qualifying loan. When you take out a new loan, the associated Earn Points appear under “unsecured points” in the NFTfi Rewards cockpit. However, if the loan is paid off, these points become “secured points.”
The NFTfi Leaderboard displays both unsecured Earn Points (awarded upon loan origination) and secured Earn Points (awarded upon loan repayment). The 500 wallets with the most secured points at the end of Season 1 will receive a 2.5x maximum multiplier on their final balance.
NFTfi is dedicated to rewarding genuine users rather than washlenders. The program disincentivizes wash loans through various measures, including no points for loans with APRs less than 2%, no points for loans lasting less than three days, and no points for related wallets.
Earn Points are currently nontransferable and not redeemable. They reflect the level of loyalty among NFTfi users. Specific individuals, such as US residents, other US citizens, and persons residing in the US, are not eligible to participate.
Earn Season 1 is just the start of a long and exciting summer at NFTfi. NFTfi has a lot of surprises in store for all of you NFT collectors out there. Check out the Earn Points cockpit and the FAQs section for more information.
Market Information
NFT lending is a rapidly expanding market; according to MarketandMarkets, the global NFT is projected to reach $13.6 billion by 2027.
NFT lending provides advantages such as liquidity, as NFT holders can use their assets as collateral for loans. It also contributes to resolving issues such as the lack of traditional financing options for NFT holders and the importance of a healthy credit market in the NFT space.
Loan investments carry inherent risks, and the value of NFTs can be highly volatile. Therefore, users should carefully consider their risk tolerance and investment objectives before taking out loans.
About NFTfi
NFTfi is a decentralized peer-to-peer lending platform that allows NFT holders to borrow Ether and DAI using their NFTs as collateral. The non-custodial platform is based on the Ethereum blockchain, where smart contracts enable secure and transparent transactions between borrowers and lenders. NFTfi offers a new way for NFT holders to access liquidity and unlock the value of their assets while also allowing lenders to earn interest on their funds. Users have transacted over $400 million on the NFTfi smart contracts since its first loan in May 2020.
