X2Y2 lending venue taps NFTBank to price NFT collaterals

abdelaziz Fathi

NFTBank has been chosen by X2Y2, the third biggest NFT marketplace on Ethereum, to power pricing information for its lending platform that enables users to utilize their non-fungible tokens as collateral.

Launched in September, X2Y2 Loans is a P2P, NFT-backed loan functionality where users with whitelisted projects can borrow ETH by staking NFTs to free up liquidity in their assets. Lending can be priced differently based on the rarity of NFTs.

The venue allows individual NFT holders to meet up with a liquidity provider to settle a loan term. Terms for the loan are entirely dictated by the two parties’ negotiation, and parameters include loan value, interest rate, repayment rate, the NFT value, loan duration, and APR. Once a loan offer is accepted, ETH is transferred to the borrower, and the corresponding NFT used as collateral is locked into a contract.

While NFTs are not the most liquid assets, NFT-backed loans help solve this issue by unlocking liquidity even when a holder cannot sell their NFTs.

NFTBank steps in to tackle the complex issue of NFT pricing; not only as every NFT unique, but sales transaction data is also extremely limited. It uses a machine learning-based statistical algorithm to provide price estimates for individual NFTs with 90+% accuracy.

The leading NFT valuation provider also leverages information such as the floor price, rarity, and bid/ask distribution to compute a single price value for any given NFT in a collection.

As such, X2Y2 loans users can use NFTBank’s price estimate as a standard when setting loan terms or making their investment decision.  With a lot insights, NFT holders can see their portfolio’s value at a glance while lenders can find the best NFT for which they pitch liquidity.

NFTBank, which is backed by Hashed, DCG, and other notable investors, offers pricing information for over 5,000 NFT collections and makes them available both with APIs and its own dedicated app. It has already become the NFT valuation solution for key projects in the scene, such as MetaMask’s portfolio dapp, Chainlink, NFTfi, Pine, Stater, Unlockd Finance.

“X2Y2 Loans is meaningful in the sense that they are the first marketplace to move onto a loans platform. With more than 3,000 DAU, X2Y2 is trusted by plenty of buyers and sellers in the market. With the loan service on top of the marketplace, its users can make purchasing and lending decisions all in one platform. Just in two and a half months since its launch, X2Y2 became a top 3 NFT loan platform approaching 8000 ETH in total loan volume,” reads the announcement.

Read this next

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

<