Skip to main content
Learn

Can an NFT Be Used as Collateral in a Decentralized Finance (DeFi) Loan?

Yes, specialized DeFi protocols allow NFTs to be locked in smart contracts as collateral for cryptocurrency loans.
Greeks.Live16.11.25

Can an NFT Be Used as Collateral in a Decentralized Finance (DeFi) Loan?

Yes, NFTs can be used as collateral through specialized DeFi protocols. These platforms allow users to lock up their unique digital assets, like valuable collectibles or virtual land, in a smart contract to receive a loan in cryptocurrency.

The loan amount is typically a fraction of the NFT's appraised value, and failure to repay can result in the NFT being liquidated or sold.

Are There Decentralized Finance (DeFi) Protocols That Allow Naked Option Writing?
How Has the Growth of Decentralized Finance (DeFi) and NFTs Impacted the Interpretation of Bitcoin Dominance?
How Does Fractional Ownership of NFTs Impact Their Use as Collateral in DeFi Lending?
How Does an NFT-backed Loan Compare to a Traditional Margin Loan on a Security?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.