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      • Buy a fixed price NFT
      • Offers on an NFT
      • A Collection Offer
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      • Accept an offer
      • About Private Sale
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      • NFT Loan
        • Borrow ETH with your NFT
        • Lend ETH and earn interest
        • Repay your loan through a contract
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On this page
  • What is a loan offer?
  • How to borrow ETH
  • Accept an offer
  • Loan repayment
  • Default
  • Airdrop Notice
  • Contract
  1. Product
  2. NFT
  3. NFT Loan

Borrow ETH with your NFT

You can now borrow ETH using your NFT as collateral on Nikaswap. This process, known as an NFT Loan, allows you to borrow from other lenders and use your NFT as collateral.

Before you can use your NFT as collateral, it must meet certain requirements:

  • NFT collections must be whitelisted.

  • NFTs are not marked as stolen or removed on Nikaswap or other marketplaces (such as OpenSea).

  • NFT must have received valid loan offers which means the lender is willing to lend you ETH based on your NFT.

NOTE:

The collection whitelist is set up to reduce the risk of highly volatile collections. We will gradually add more collections to the list. If you would like to add your collection to the whitelist, please contact us.

When you accept a loan offer, you set up an NFT Loan. This process includes several steps:

  1. An amount of ETH is sent to your wallet.

  2. You are required to repay an amount of ETH (the amount you borrowed plus interest) ahead of time.

  3. Your NFT is locked in the contract as collateral until you pay off the loan.

  4. Lenders have the right to take NFT collateral if you don't pay off the loan by the due date.

What is a loan offer?

Loan offers are a way for lenders to show their willingness to lend you ETH based on your NFT value. There are two types of loan offers based on target categories:

  • Collection offers apply to all items of a collection. Anyone who owns an item in the collection can accept the collection offer.

  • Item offer applies to one item. Only the owner of the item can accept the offer.

A typical offer includes the following provisions:

  • Loan value/principal: The amount of ETH that the lender is willing to lend.

  • Refund value: The amount of ETH that the borrower must repay, including the borrowed amount and interest.

  • Period: The amount of time it can take for the borrower to pay off the loan.

  • Annual Percentage Rate (APR): The annual cost of the loan to the borrower, including interest and fees, expressed as a percentage. It is used to measure the amount of interest that will accrue on the loan value.

  • Expiration Time: the offer becomes invalid after the expiration time.

How to borrow ETH

To start borrowing ETH, you need to find one of your NFTs that has received a loan offer. You can check the "Loan" section on the NFT detail page.

  • If you have an NFT of whitelisted collections, you can open the NFT's details page to view loan offers.

  • If not, you need to wait until other collections you own are whitelisted or buy NFTs from the above collections.

Accept an offer

Once you've identified the loans for your NFT, you may see several options with different loan values, APRs, and tenors. Take the time to review each offer and choose the one that suits you best.

Once you've decided which offer to accept, click the "Borrow" button on the right hand side. You will be prompted to review the terms and confirm your choice by clicking the "Loan" button at the bottom of the screen.

Once the transaction is successful, your NFT will be locked in the contract and the ETH will be deposited into your wallet.

Loan repayment

To view your ongoing loans, navigate to the "Loan" tab on your profile page. From there, you can click the "Repay" button on the right hand side to pay off your loan and get your NFT back.

You can repay the loan at any time before the due date. However, keep in mind that the return value will be unchanged.

Default

If you do not repay the loan by the due date, the loan will be considered a “default”. You will no longer be able to repay your loan and get your NFT back through Nikaswap. Instead, the lender will be able to get the NFT back to their wallet.

Airdrop Notice

Once your NFT is locked in the loan contract as collateral, any tokens airdropped to the NFT project will be sent to the loan contract. Currently, there is no way to move these tokens out of the contract. This is a limitation of the contract that we hope to improve in the future.

Contract

NFT loan mainly involves 5 contracts:

  1. Delegate - 0xeF887e8b1C06209F59E8Ae55D0e625C937344376

  2. NFT V1 Loan - 0xC28F7Ee92Cd6619e8eEC6A70923079fBAFb86196

  3. NFT V2 Loan - 0xfa4d5258804d7723eb6a934c11b1bd423bc31623 SlowMist audit report NFT

  4. Lender Ticket: 0x0e258c84df0f8728ae4a6426ea5fd163eb6b9d1b

  5. NFT Borrower Ticket: 0xbd85bf4c970b91984e6a2b8ba9c577a58a8c20f9

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Last updated 1 year ago