According to estimates, the global economy traded over $18 billion in NFTs, making it one of the fastest-growing industries in the world. Even though cryptocurrencies have seen a meteoric rise in the world’s economic future, banking institutions around the world have been slow to recognize the value of digital assets.
In such a situation, avid collectors who have their liquid currency tied up in NFTs can face a dilemma as prices move at lightning-fast speed in web3. Utilizing the window of opportunity is crucial in such cases and pawn bots were created to help out users make such important decisions.
Hifi protocol is a platform that helps token holders to get access to the liquid cash that can be borrowed against their valuable NFTs without having to sell their favorite assets.
The platform offers two ways to do this: Peer-to-peer and peer-to-pool options. Peer-to-peer lending deals in 1:1 transactions and comes with higher interest rates and takes a considerable amount of time for both parties to agree on favorable terms.
Peer-to-pool lending, on the other hand, allows lending investors to borrow a percentage of their NFTs value instantly at fixed loan rates and terms.
For example, if a user holds a Pawn bot NFT that is valued at $2000 in value, and they borrow $500 against their NFT in liquid cash, they are free to make any purchase they want to. After the loan is repaid, the user can take back their NFTs.
The NFT space is growing rapidly and the value and utility that NFTs provide to their holders are increasing manifolds. Pawn Bots makes it easy for NFT holders to tap into the value they provide and keep their momentum without making a tough choice.
For more information on Hifi Finance, please check out their official website.
Disclaimer: This is a paid post and should not be treated as news/advice.
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