NFTFi has completed a protocol upgrade, introducing a set of new features into the NFT industry. The platform is now offering loans with extended durations of up to 5 years (1825 days).
NFTFi is a peer-to-peer platform that connects NFT holders and liquidity providers directly via permissionless smart contract infrastructure.
The platform allows NFT holders to use their NFTs as collateral to borrow wETH, DAI, or USDC from lenders.
In response to user feedback and the growing demand for long-term loans, NFTfi has extended its loan durations, previously designed to last for 365 days.
This enhancement opens up new financial horizons, offering borrowers greater flexibility and providing lenders with new yield opportunities.
NFTFi also noted that one milestone achieved with this upgrade is the issuance of the first-ever 2-year loan for a Chromie Squiggle NFT, featuring a competitive 9% APR.
Additionally, the NFT platform is gearing up to support ERC-1155 assets, a multi-token standard that has gained traction within the NFT ecosystem.
This support will facilitate the use of semi-fungible tokens on a shared contract, heralding a new era in NFT collateralization.
This development lays the groundwork for the tokenization of real-world assets (RWAs) including physical art, collectibles, real estate, and even intellectual property, as collateral for NFT loans.
It also added plans for the future, with refinancing and pro-rata loan repayments on the horizon. These features are set to provide even more flexibility and options for users of the platform.
The implication of the announcement also means that there will be new smart contract addresses. Existing loans will continue and conclude on the previous smart contracts.
Users are advised to grant new permissions, but no further action is necessary, except for borrowers looking to renegotiate their loans.
“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,” NFTFi said.
To make the new changes easier, by the end of the year, the platform will phase out renegotiations on the old smart contracts, allowing them only on the new contracts.