Strip Finance, a collateralized NFT & DeFi liquidity protocol initially launching on Binance Smart Chain, secures $500,000 in seed funding from Lancer Capital, Old Fashion Research, Nothing Research, Tenzor capital, Block0, Shima Capital, and J10M Capital.
Strip Finance aims to provide an NFT liquidity solution by building a marketplace for collateralized NFT borrowing and lending. Its founders conceptualized the idea in response to the global explosion of interest in digital ownership coupled with the current, antiquated state of the art and collectibles markets, whose auction house practices have hardly changed for centuries.
Yash Jejani, CEO of Strip Finance on the investment, said:
“Going forward, NFTs will become the de facto method of claiming ownership in the digital world and we want to be at the forefront with our offerings that increase capital efficiency in the space.”
Lancer Capital Managing Partner John Wong, said:
“After a period of accumulation in the NFT market, the rise of GameFi once again showed the vitality of the NFT ecosystem. Nevertheless, there has been no good solution to the liquidity problem in the NFT market, which makes it particularly important to increase the application scenarios of NFT. Strip Finance, with its unique collateral model, better reflects real market rates, which opens up more applications for other NFT ecosystem products.”
In decentralized P2P lending, individual lenders will decide the fair value of Non-fungible Tokens (NFTs) after considering different data points such as artist profile details, past sales aggregates, NFT’s trading history, owner’s risk score etc.,” states, Yash Jejani, co-founder of Strip Finance. “In addition, the platform also plans to provide a second option, i.e., pool lending, for deploying capital and offering fair prices for NFT holders. This is a fast lending option, as the liquidity will be higher.”
“When bids are invited for the NFTs on the Strip Finance platform, users will get realistic offers with respect to current market prices. In addition, the different NFT offerings will provide lenders with choices to make an informed decision while deploying capital. As a result, all the desired NFTs will get a fair valuation.”Strip Finance
Other NFT Lending Platforms
NFTfi is a P2P platform that lets its users pawn their crypto art tokens and take out loans. In February, the project received $890,000 in funding from top NFT companies and execs, among them Roham Gharegozlou, the CEO of Dapper Labs, the NFT company behind CryptoKitties and NBA Top Shot crypto trading games.
Stater is a P2P lending and borrowing platform that allows users to leverage their NFT assets and have access to liquidity while still retaining ownership of their digital assets. We provide value to previously latent capital, unlocking wealth within digital assets and providing a new source of money creation.
DeBank by ETNA Network allows nonfungible tokens to be used as collateral. In Q3 2021, it launched DeBank lending and borrowing network Mobile applications. It has now developed liquidity-based trading exchange with enhanced Broker-buyer type trading feature. The company is now diversifying into gaming and designing products on play-to-earn NFTs. It has already expanded its gaming ecosystem and established major gaming partnership.
In August, Vera, a DeFi platform for non-fungible tokens (NFTs), secured $3 million in a seed funding round led by Animoca Brands. Vera is developing a NFT DeFi platform for lending, leasing, and trading. Leasing is particularly relevant for games because sometimes people might want to borrow an NFT-based character to play a game.
NFT has now become a rage, and it is clear that this blockchain technology is not limited to just giving a verifiable digital identity to an artwork or creative piece. It is going to be much bigger than one can anticipate. Once the power of DeFi applications is unleashed, we will see a considerable uptick in the growth of the market and the usability of NFTs.
As a result, NFT lending platforms and protocols will play a huge role in helping users get a fair valuation of their digital assets, and quick liquidity without losing the ownership.