NFTfi Protocol Upgrade and Multi-Year Loans
October 12, 2023 ・ 3 min read
We are excited to announce that we have just completed a new protocol upgrade! This upgrade is a significant leap forward in our vision of expanding and deepening the utility of NFTs within the decentralized finance and NFT financialization ecosystem.
Enhanced Security and 5 Year Loan Durations
Security and flexibility remain paramount for us. Our engineering team has worked diligently on several security upgrades to ensure that the protocol remains the most trusted and secure in the NFT lending space. With this in mind, we are introducing loan durations of up to 5 years (1825 days) in direct response to user feedback. Since the first quarter of 2023, NFTfi has seen a steady uptick in long-term loans which now make up over ~5% of monthly loan originations on the platform. Previously capped at 365 days, the new multi-year loans now enable borrowers much greater financial flexibility, and lenders new yield opportunities.
This Chromie Squiggle received the first-ever 2-year loan on NFTfi at 9% APR.
Borrowing and Lending Against ERC-1155 Assets
Another highlight of the upgrade is support for ERC-1155 assets that will be enabled in the dApp soon. This multi-token standard has become increasingly popular in the NFT space, with its unique ability to represent semi-fungible tokens on a shared contract.
With this upgrade, NFTfi is laying the groundwork for tokenized real-world asset (RWA) collateralization. It will be possible for many types of RWAs such as physical art, collectibles, real estate, and even intellectual property as NFTs to be used as collateral on NFTfi. The boundaries between the tangible and intangible, the physical and the digital, are blurring rapidly and we are proud to be participate in this technological shift. We’ll provide more information in the upcoming weeks.
Refinancing, Pro-Rata Loans and More
But that's not all! This protocol upgrade also unlocks additional features on our product roadmap. We'll be rolling out further protocol features such as refinancing, pro-rata loan repayments and other features soon.
This protocol upgrade has introduced several new smart contract addresses into our contract infrastructure (by replacing existing smart contract addresses). To view these new smart contract addresses, please visit our documentation.
All existing loans will continue and conclude on the existing (old) smart contracts. You'll need to grant new permissions; beyond that, no action is required, except for borrowers intending to renegotiate their loans soon.
Please also note: by the end of the year, we will deprecate renegotiations on the current smart contracts and allow renegotiations only on the new smart contracts. We recommend borrowers to either: renegotiate the existing loans before 31 December, 2023, or repay the existing loans before 31 December, 2023, and start new loans.
If you're just discovering NFTfi, watch the video below for a quick overview and check our beginner’s guide to borrowing.
Stay up to date by following our Twitter, and chat with experienced NFTfi users by joining our Discord community.
This article is for educational and informational purposes only and should not be considered financial advice. Conduct your own research and due diligence before making any investment or financial decisions, such as when considering novel products including NFT loans.
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