Leveraging NFTs for a DeFi Loan
TLDR
- With the alpha release of Teller V2, Teller NFT holders get access to instant liquidity by borrowing against their NFTs.
- And now, ANY NFT can be used as collateral for a Custom OTC loan on Teller.
Fortune Teller NFTs
On April 1, 2021, Teller Protocol released the Fortune Tellers (FTNFT), a collection of 2,211 NFTs on the Ethereum blockchain. The NFTs were a first implementation of a real-world asset as a warranty for a loan.
Fortune Tellers enabled holders to borrow against liquidity in the protocol and leverage the liquidity for specific in-protocol use cases Since the launch, holders have utilized over $50k in NFT secured loans.
Get a Fortune Teller NFT here: OpenSea
Utility for v1
Here’s how holders used their staked NFTs in Teller v1:
- Long/Short ETH in a Gnosis Safe and earn the difference
- Leverage NFT as a down payment on - Ape Now
- Earn yield in whitelisted pools - TrueFi, PolyTrade, TowerFund (4-8% APY)
Teller v2 Alpha
Teller v2 (released March 2023) simplifies the lending process and now allows any token to be used as collateral (ERC20, ERC721, ERC115) and enables one-click borrowing with no requirement to supply before borrowing (like on most DeFi protocols.)
It’s all made possible with isolated order books. Instead of price-based liquidity pools that are vulnerable to market volatility, Teller order books use flexible duration loans with fixed APRs that are immune to swings in collateral value.
Learn more here: https://blog.teller.org/borrow-with-one-click/
Instant Loans
All Fortune Teller NFT holders can now access instant liquidity using their NFT as collateral.
FTNFTs can now be used to secure a 0.2 wETH loan.
Terms:
Duration: 30 day loan
APR: 16.9%
LTV: 200%
Restrictions: none
*Loan amount is the same for Tier 1, Tier 2, and Tier 3 NFTs. (Stacking multiple NFTs as collateral is coming soon.)
Custom Loans
Since the Teller v2 alpha also enables any token to be used as collateral, that means ANY NFT (including Teller NFTs) can be borrowed against for a secured DeFi loan.
The difference between instant loans and OTC Loans is that OTC loans do not have guaranteed liquidity. So a user can make a loan request using any NFT as collateral, but that loan won’t be successfully filled until an LP funds the request.
Loan availability & loan terms can vary based on market conditions
Learn more about OTC loans here: https://docs.teller.org/teller-lite/borrowing-on-teller
📃 Teller V2 Docs – https://teller.gitbook.io/teller-lite/
🔒Github – https://github.com/teller-protocol
👾 Discord – https://discord.com/invite/teller
🐦 Twitter – https://twitter.com/useteller
🖥️ Teller App – https://alpha.lite.app.teller.org/