How Does an NFT Lending Protocol Handle Partial Loan Repayment? ▴ Learn

How Does an NFT Lending Protocol Handle Partial Loan Repayment?

An NFT lending protocol handles partial repayment by updating the borrower's outstanding debt and recalculating the loan-to-value ratio within the smart contract. This reduces the risk of liquidation for the borrower and lowers the total interest accrued.

The NFT collateral remains locked in the contract until the full principal and interest are repaid.

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

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

How Does a Smart Contract Handle the Conversion of Collateral to Stablecoins upon Liquidation?

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