Flare Network taps Pawnfi to help NFT collectors pawn, lease, or sell their assets
NFT collectors can leverage Pawnfi to draw collateralized loans against their assets or lend them for yield.
Flare Network has announced a partnership with Pawnfi to unlock usage for Non-Standard Assets (NSA) on the network.
Pawnfi is a DeFi product that facilitates the divestiture of asset ownership, use rights, and earning rights of Non-Standard Assets.
NSAs can be any type of fungible and non-fungible assets that are difficult to realize, such as NFTs, liquidity provider tokens, GameFi assets or just fungible tokens for smaller projects.
Holders of such assets can draw loans against or lease their assets to gain instant usage from their illiquid tokens by placing them on Pawnfi, which offers three modes: Pawn (collateral for loans), Lease (lending the assets to others for passive income) and Sale (listing on secondary markets for the highest bid).
Assets will be subject to Pawnfi’s “advanced fair appraisal systems”.
Flare users to gain access to Pawnfi’s services
Hugo Philion, CEO and co-founder of Flare Network, said: “We are glad to see Pawnfi joining the Flare ecosystem to make use of our powerful interoperability solutions. By joining the Flare community, Pawnfi will be able to tap into virtually all major blockchains and assets, dramatically boosting their reach. Meanwhile, Flare users gain access to Pawnfi’s innovative solutions for unlocking usage of less liquid assets.”
Wesley Kayne, CEO and Founder at Pawnfi, commented: “Pawnfi will become a one stop destination as it can now provide a bridge into other metaverses. Users can achieve seamless cross-chain operations with their assets, and leverage on Pawnfi’s lend/rent/sell as well as advanced liquidity modules to utilize their assets to retain financial benefits.”
The partnership will allow Pawnfi to onboard more L1 DeFi chains, GameFi products and NFT ecosystems through Flare’s decentralized and fully-insured LayerCake bridges.
NFT collectors are the ones to benefit the most from the Pawnfi liquidity model. This particular group of holders is likely to have large amounts of capital locked in assets they are unwilling to part with but can still leverage Pawnfi to draw collateralized loans against them or lend them for yield.
Pawnfi’s community of users is over 280,000 and will bring additional liquidity to the existing Flare NFT ecosystem. The move also bolsters Flare’s DeFi presence as users can supply capital for the Pawn protocol or make advanced trades with NSAs.