NFT as collateral is coming - Sentiment

[mr_aave]

Hey :)
NFT as collateral is coming to

@AaveAave

What do you think about it ? Any Idea about how to determinate the price, the liquidation system, etc … ?

Thanks !

[toad]

Hello
I briefly discussed this a while back:

Initial (very early) Discussion: Tokenised commodities as collateral on AAVE

Hi @joshman91! I had not heard of either Bullionix or Icecap Diamonds before, but thank you for sharing as these are both interesting examples of NFT commodities. I can see that Bullionix has a DGX token like you pointed out which represents a gramme of gold. I believe that chainlink can be used alongside commodity NFTs to ensure that market rates are accurate. Non-fungible tokens in general are possibly a hurdle for AAVE. The assets that can be deposited and borrowed on AAVE to this date are …

As far as I know there hasn’t been much discussion on the topic on this forum but I haven’t kept up with developments in the background of which I am sure there have been some. Further developments with NFTs and what they are/purpose they serve have taken place for example and so the idea of what they would look like on AAVE now might actually be quite different.

Do you have any ideas @mr_aave ?

[mr_aave]

Thank you for sharing

Maybe we can imagine a kind of decentralized auctioneer like the oracles like link and even a special NFT stablecoin that can be collateralised =>

Let’s imagine that I own an NFT valued by the oracles at $10,000 according to supply, demand, and different criteria like rarity, artist’s rating, and many other parameters that can be added and voted by the holders of a governance token linked to the NFT oracle.

Then, depending on the price determined, the person who owns the NFT has the option of requesting the equivalent in “stablecoin art” and Aave to authorize the deposit of this famous “stablecoin art” in order to borrow stablecoin, aave, eth or any other desired coin

Let’s imagine that this art stablecoin would be accepted by NFT sales platforms in addition to weth or stablecoins so we could know how much art stablecoin there is in circulation, in collateral, etc… of course NFTs can be traded in all currencies and coins but it would be a kind of gateway if one wants to be able to collateralize his NFT. Moreover, we can even imagine a time rating for the rise or fall, a risk factor, more or less important liquidation thresholds, etc.

I don’t know if what I’m saying makes sense but don’t hesitate to contribute your ideas as well

[Donzo]

Yes,

But how will the robots liquidate illiquid NFTs?

When the market is on fire, I fear that art will not prove liquid.

We need something like NFTX to work in order to efficiently commoditize NFTs.

[KriptoHayat]

fake value can be easily created in this market. Something of no value can be exchanged for millions of dollars. It’s too early for NFT loans.