How Do NFT Lending Platforms Verify the Value of the Collateral? ⎊ Path

How Do NFT Lending Platforms Verify the Value of the Collateral?

Verifying the value of a unique NFT is complex. Platforms use various methods: price feeds from major marketplaces (floor price), machine learning algorithms that analyze sales history and metadata (rarity), and in some cases, peer-to-peer appraisal.

This valuation is crucial for setting the loan-to-value (LTV) ratio and determining the liquidation threshold.

What Is the Primary Risk for the Lender in a Peer-to-Peer NFT Loan?

How Do Lenders Use LTV Ratios to Determine Interest Rates in Traditional and Decentralized Finance?

What Is a ‘Liquidation Threshold’ and How Does It Differ from the Initial LTV?

How Does the Metadata Structure Affect NFT Marketplace Indexing?

How Does an NFT Lending Protocol Handle Partial Loan Repayment?

How Can Machine Learning Be Applied to Detect New, Evolving Forms of Front-Running?

How Does a “Peer-to-Peer” NFT Lending Protocol Work?

What Is a ‘Margin Call’ in the Context of an LTV Breach?