Strip Finance, an NFT and DeFi protocol with collateral for liquidity, puts NFTs to better use by guaranteeing them against stablecoins and providing greater liquidity.
A next-generation NFT platform called Strip Finance enables non-fouling collateral while preserving asset ownership, taking DeFi and NFTs to a whole new dimension.
Created by seasoned crypto entrepreneurs, Strip Finance allows users to lend their NFTs in exchange for stablecoins allowing them to generate liquidity without selling or leveraging the value of holdings to mint more NFTs.
Moreover, Strip Finance allows lenders to earn interest on the platform and get a chance to get distressed NFTs at discounted rates.
It appears that non-fungible tokens (NFTs) have exploded this year. NFT sales increased more than eightfold to $10.7 billion in the third quarter of 2021 due to the ongoing frenzy of NFTs.
Despite this boom, most NFTs have become worthless with no better use cases. NFTs are usually more difficult to use productively once purchased, unlike redeemable tokens, which may be held, loaned, or otherwise used to produce return.
On the other hand, Strip Finance solves this important problem by offering a better use case, than NFT collateral, where lenders can lend to NFT and borrow stablecoins.
Access to stablecoins will enable owners to access liquidity for a variety of purposes, including exploring further investment possibilities, personal expenses or hedging in the market. They can even be exchanged for fiat orders, used in DeFi protocols, or used to buy more NFTs.
Understanding collateral – the way to finance the sector
The startup is developing a platform where anyone who owns the required NFT can use it as collateral to borrow money. Asset pricing data on the Strip Finance platform will be collected directly from NFT marketplaces such as Opensea, Rarible, etc., without any modifications by Strip Finance.
The platform, which will support Ethereum Chain, Matic Chain, Binance Smart Chain and the ecological Solana, will allow funds to be borrowed without any intermediaries, similar to other DeFi protocols.
Strip Finance will follow the basic principle of the lending/borrowing marketplace for NFT collateral. Accordingly, Strip Finance aims to bring together lenders and borrowers on the platform where if someone wants to borrow, they must first list the NFT in the market. Furthermore, lenders can then begin expressing their willingness to lend against that specific NFT with additional information such as loan term, payment frequency and liquidation terms to keep both parties informed.
Furthermore, NFT holders receive stablecoins without selling the NFT allowing them to obtain liquidity without selling or tapping into the value of holdings while still holding their valuable assets.
For lenders, it allows them to earn interest on the platform, and they have a chance to get the distressed NFTs at discounted rates.
Initially, the platform will offer loans in the form of the USDT stablecoin and aims to continue expanding its ecosystem with new features.
Finance sector: a platform with potential
NFT is no longer just about digital art, it is so much more than that. With DeFi and NFT spreading into the mainstream, one can expect turmoil in the world of traditional finance.
Additionally, platforms such as Strip Finance that pool liquidity on the platform through a decentralized P2P approach and coordinated pools to allow for the capitalization of NFT assets will add to the evolution of the industry.
In August, the company raised about $500,000 in an initial round of Old Fashion Research, Nothing Research, Tenzor Capital, Block0, Shima Capital, Lancer Capital and J10M Capital.
Furthermore, the advisory board of Strip Finance includes Siddharth Menon, COO of WazirX; Genetti Kenani, CEO of Polygon; Tamar Mentisashvili, Solana Growth Ecosystem; and Yida Gao, GP from Shima Capital.
Finance: Thinking Beyond Art
Strip Finance intends to take NFTs to the next level, and with the support of well-known companies and individuals, there are good opportunities to build good momentum on Binance Smart Chain and Solana. Furthermore, the founders of Strip Finance are veteran crypto entrepreneurs with backgrounds in some of the most well-known technology companies, including Ankr, Bithumb, ConsenSys, Bitfinex, Prometheus Labs, and Coldsstack.
The team believes that providing means of collateral for NFTs and providing liquidity brings value to NFTs. Likewise, they believe that the transparency and legitimacy of the NFTs will be restored through the financial support of the NFTs.
Going forward, Strip Finance’s plans include entering into debt financing for crypto projects by allowing project tokens minted as NFTs to be used as collateral on the platform.
