While many are not yet familiar with the use cases of NFT in the crypto world, an innovative NFT collector in Defi has found an interesting use for his token.
Events of the event
Three months ago, an NFT collector borrowed 3.5 ETH, which at press time is worth over $ 12,000 on the DeFi credit platform NFTfi.
When forced to raise collateral, the collector surprisingly used his Elevated Deconstructions NFT to guarantee the loan. This NFT was part of the Curated Art Blocks set that sold for 11 ETH, but at the time it was last sold for 3.25 ETH, a number that is lower than it borrowed.
However, before the loan term expired, the NFT had skyrocketed in value thanks to endorsements it received from prominent NFT collectors such as the nicknamed Twitter accounts of Snoop Dogg and Punk 6529.
According to the information available, the NFT collateral type is being sold with a base fee of 85 ETH and a high of 200 ETH, which means that the value of the NFT has increased from $ 306,000 to $ 720,000.
Interestingly, at the end of the repayment period, the NFT collector was unable to repay his loan, which resulted in the collateral – now valued at more than $ 300,000 – being transferred to the lender. This means that the Defi NFTfi platform received hundreds of thousands of NFTs for a loan of just 3.5 ETH.
Another interesting side of this story is the fact that this is not the first time this Elevated Deconstructions NFT has been used as collateral for a DeFi loan. And in either case, the borrower cannot repay the loan. In the first case, NFT is used as collateral for a loan of only 3 ETH.
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According to Cryptoslate