[BRAINSTORM] Utilize pooled NFT on NFTX as a collateral for loans

  • NFT are the new form of capital. Their utilisation as collateral in the DeFi ecosystem is desirable and inevitable.
  • The recent launch of Fuse by Rari is an opportunity to put this capital to work.

Project

Rari Capital, recently launched Fuse; an isolated interest rate market. In a nutshell: a market on which you can select autonomously the collateral supported and the risk framework associated.

I propose the creation of a NFTX market composed of the most liquid pools on Sushiswap. Selecting the more liquid asset is fundamental to providing Rari the certitude liquidation will be done at a competitive price. Based on the Aave risk framework, I provided those potential settings for the market. This needs to be challenged.


Link : NFTX x Fuse - Google Sheets

Benefits

In addition to the evident benefits that getting leverage on NFT brings, this integration will

reaffirm the will of NFTX to build innovative, useful tools at the intersection of DeFi and NFT.

In the spectrum of what has been done with PieDAO, the partnership with RariCapital would be the occasion to communicate on the first solution to offer “NFT as collateral” while making those two dedicated communities closer.

Implementation

I don’t see any difficulty in implementing this. Rari is waiting for a NFTX representant to contact them if the community wants to be part of the safeguarded launch of Fuse.

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This is dope, great initiative @TheoRochaix

Paging @willprice and others to have a look at the implications of this. Happy to move this through and can assist anywhere you need me once the idea is cristalized :slight_smile:

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“NFT as collateral” was pretty much the first use case that came to mind when I heard about NFTX so I love that we can potentially get the ball rolling on this.

Am a big supporter of the idea and think there’s plenty of ways we could promote it within our consumer apps as another value-add of minting an XTOKEN.

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The NFTX/PUNK-BASIC pair is significantly deeper than ETH/PUNK and could support a higher loan to value ratio

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Definetly, great point.
I updated the sheet

Capture d’écran 2021-03-31 à 09.59.09

We will discuss this at gov call today and then move forward with @0xchop and the Rari team

Great idea, using NFT’s as collaterol is a huge benefit and NFTX should be one of the first movers in this space!

One point I would make is AXIE & Kittys on your table…

  • A loan to value of 5% and with relatively low liquidity (Compared to the others) makes me wonder if these will ever get used… There is not too much value in a 5% loan to value IMO.
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