Strip Finance is a Collateralised NFT & DeFi Liquidity Protocol. It’s a peer-to-peer marketplace for crypto loans using collateralized Non-Fungible Tokens (NFTs). It allows borrowers to collateralize their NFTs for loans and the lenders to make proposals in exchange for interest.
Strip Finance – The Platform
Strip Finance is a decentralized peer-to-peer marketplace in which anybody with an NFT may use it as collateral to borrow stablecoin loans. The asset (NFTs) pricing data on the Strip platform will be directly fetched from popular NFT marketplaces such as Rarible, SupeRare, Opensea, and Wazirx without making any changes to the prices of NFTs.
Strip Finance primarily allows users to lend their NFTs for stablecoins allowing them to attain liquidity without selling or leveraging the value of holdings to mint more NFTs. Furthermore, Strip Finance allows lenders to earn interest on the platform and also gives a chance to acquire defaulted NFTs at discount prices.
STRIP is the platform’s native token, which is used for several functions on the platform. These tokens are also used to pay all platform costs, such as borrowers’ fees and lenders’ interest, as well as for DAO governance (for updates, Airdrop, Community grants, etc).
Understanding Strip Finance’s NFT collateralization
Strip Finance follows the basic principle of the lending/borrowing market for its NFT Collateralisation. Firstly, the borrowers list their NFTs on the P2P marketplace and then the lenders begin to propose how much they are prepared to give against that specific NFT.
The process of negotiation is currently limited and if the borrower does not reply within a defined period, offers will be rejected. However, if both parties have agreed to the transfer, then the ownership of the NFT will be transferred to the marketplace’s smart contract escrow mechanism.
Similarly, NFT is then returned to the borrower upon repayment of the loan amount (principal + interest). Even yet, if the borrower fails to meet his or her obligations under the loan agreement, the lender has the option of calling the loan and reclaiming the NFT to complete the settlement.
Moreover, Strip Finance keeps both parties informed as a precautionary step for the aforementioned problem by providing supplementary data such as loan term duration, payment frequency, and liquidation terms on their website.
Strip Finance – Solving the Problem of Price Discovery with NFTs
Strip Finance determines the NFT prices by fetching the price data from popular NFT marketplaces like Rarible, SuperRare, and OpenSea. It works in correlation with popular NFT marketplaces without making any changes in the prices of the NFTs.
Strip Finance with its decentralized P2P lending allows individual lenders to determine the NFT’s fair value based on a variety of data points such as the artist’s profile characteristics, historical sales averages, the NFT’s trading history, and the owner’s risk score.
Additionally, the platform offers a second alternative of pool lending for better capital deployment. Pool lending helps NFT holders to get fair value for their NFTs. When customers place bids on the Strip Finance platform for NFTs, they will receive realistic offers based on actual market values.
Lastly, the various NFT solutions will give lenders options for making educated capital deployment decisions. Thus, all requested NFTs will be valued fairly. As a result, one can get access to quick loan options due to the increased liquidity.
Collaborations and investments: Strip Finance’s Success So Far
Strip Finance’s vision of creating a collateralized NFT lending and borrowing platform on BSC has already put the project on the radar of investors and users in the market. The company has secured a total of $1.5 million in funding from LD Capital, Old Fashion Research, Nothing Research, Tenzor capital, Exnetwork Capital, Valhalla capital, Block0, Shima Capital, Lancer Capital, MEXC Global Exchange, Kryptos Research, Bigcoin, J10M Capital and ZBS Capital amongst others.
Moreover, Strip Finance’s advisory members include Siddharth Menon, COO of WazirX; Jaynti Kanani, CEO of Polygon(Matic); Tamar Menteshvili, Head of Solana’s Ecosystem; and Yida Gao, GP at Shima Capital.
The Team Behind Strip Finance
Strip Finance’s core team consists of Yash Jejani, Yuvraj Chibber, Setu Saurabh, and Varun Satyam, all of whom are seasoned cryptocurrency entrepreneurs with backgrounds in some of the most well-known technology companies, including Ankr, Bithumb, ConsenSys, Bitfinex, Prometheus Labs, and Coldsstack.
NFT Collateralisation: A Better Utility for NFTs
The NFT space is no longer exclusive to digital art. With improved application scenarios, NFTs may be put to good use. This has the potential to significantly disrupt the NFT and Metaverse industries. Additionally, combining DeFi and NFTs paves the way for a more advanced Web 3.0.
Platforms like Strip Finance seek to take NFTs to a whole new level by providing a better utility, through NFT collateralization. This could not only solve the problem of illiquidity in the NFT markets but also give NFTs the deserved value.
Strip Finance with its exclusivity will build the core piece of infrastructure (NFT markets) to enable the growth and acceptance of these digital assets.
Disclaimer: This is a paid post and should not be considered as news/advice.