Some NFTs are worth the cost of a home (see cryptopunks). Just like with homes, it can make sense to finance the house with a mortgage or debt. Appreciation or instant cash flow are great reasons. Now with seamless integration into DeFi, borrowers can easily earn yield on NFTs. This allows users to earn cash flow on pictures of monkeys. The midcurvers will be furious.
After hours of researching and using NFT lending platforms, we have discovered the best platforms for low rates, liquidity, and safety.
The long hours spent researching have paid off as there is a clear winner in the NFT Finance space for many NFT collections. It offers safety, the lowest rate, and even yield opportunities for your NFT. There are many unique situations where you may choose any of the following lender leaders, as they each have unique offerings with different features.
What are the Best NFT lending Platforms?
Our Pick
Jpeg’d is the best lending platform if you want low rates with yield opportunities for your NFT.
- Lowest rates in synthetic ETH or USD
- Open repayment schedule – loans can be repaid at any time
- Available insurance at a reasonable rate
Runner-up
Blend (from Blur) is best for short-term or flash loans. Easily access 0% rates, which if you repay in a timely fashion will cost you nothing but gas.
- 0 fees for Borrowers and Lenders
- Many collections over 0% interest loans for ~1 day loans
- Does not rely on oracle pricing
Best Peer-to-Peer Lender
Arcade is a solid peer-to-peer choice for unique collection NFTs or bundles
- Currently, no fees associated with lending or borrowing
- Can bundle NFTs for gas savings or unique deal structures
- Wide range of collections
What you need to know
- Lending made simple
NFT finance is much simpler than traditional financing processes. Collateral-based lending makes it easy to gain liquidity for jpegs with a few clicks. - Tested for ease of use and security
We spent several hours with each of the protocols with our NFTs to confirm their legitimacy.
- Unbiased Testing
We evaluate the NFTfi platforms for various use cases so that you can understand which one is best for your specific needs - Changing rates and terms
Rates and fees are critical to the value proposition for borrowers and we constantly search to update our recommendations based on relevant info.
Our Pick
JPEG’d
The best NFT lending rates
This protocol offers the lowest rates in NFTfi, has earning solutions, is battle-tested, and has whale mode. But smaller collections are not supported and gas optimization is suboptimal and can be prohibitive for lower-priced NFTs.
Exceptionally Low-Interest Rates
Experience unbeatable loan rates as low as 10% and 15% for pUSD (synthetic USD) and between 5% to 10% for pETH (synthetic ETH). These rates are made possible by a MAKER-style protocol, which dynamically adjusts to maintain attractiveness and competitiveness, ensuring users always receive the best deals.
Flexible Loan Terms
What sets this platform apart is the absence of fixed loan terms. Borrowers have the freedom to manage their NFT leverage by paying down loan amounts as needed, especially when liquidation risks loom. This flexibility empowers users to navigate their financial strategies with ease and confidence.
Added Security and Convenience
For added peace of mind, the platform offers insurance options and a dedicated Telegram alert bot, ensuring users stay informed and protected against market volatility.
Beyond Loans: Earning Opportunities
Once users acquire synthetic USD or ETH, the platform opens up further avenues for financial growth. Through the Citadel, an auto-compounding vault, users can farm their synthetic assets, harvesting rewards and maximizing yields on their digital assets. Alternatively, converting synthetic assets into liquid counterparts like USDC or ETH offers even more versatility in asset management.
A Platform Like No Other
JPEG’d stands out as a superior choice for NFT-backed lending, according to our comprehensive review. Its combination of low-interest rates, flexible loan management, added security features, and lucrative earning opportunities positions it as a top-tier platform in the NFT finance sector. For anyone looking to unlock the full potential of their digital assets, JPEG’d offers an unmatched user experience.
Runner-up
Blend
Best for short-term loans
Sometimes you just need some ETH for a day or a transaction. Whatever the reason, Blend typically has 0% loans for 1 day before it will get refinanced. The typically gets then put up for auction, but for short-term loans it can make plenty of sense for quick digital cash.
Unlock Instant Liquidity with BLEND by Blur: A Game-Changer for NFT Owners
In the dynamic world of cryptocurrency, gaining quick access to funds without selling your valuable digital assets is a game-changer. BLEND by Blur offers NFT owners a revolutionary way to tap into their JPEGs for instant liquidity, combining the convenience of a credit card with the investment potential of NFTs. This platform stands out by providing short-term, 0% interest loans, making it an exceptional choice for those in need of ETH for brief periods.
Zero-Percent Loans for Immediate Needs
BLEND enables you to access a 0% loan against your NFTs for a short duration. This unique opportunity arises as lenders are motivated to offer these favorable terms to earn $BLUR tokens, a platform-specific incentive that rewards prompt repayment. It’s a win-win: you get the cash flow you need, and lenders get rewarded for their participation.
Utilize Your JPEGs Like Never Before
With BLEND, your NFTs become more than just digital art; they transform into a flexible financial tool. This platform allows you to leverage your JPEGs in a way that’s akin to using a credit card, offering a seamless solution for immediate liquidity needs without the hassle of selling your assets.
Auctions and Market Rates: A Transparent Approach
One of the standout features of BLEND is its straightforward and fair process for loan repayment. Should a lender decide to conclude the loan, the NFT goes up for auction, typically giving you about two days of 0% interest before transitioning to market rates. This ensures that loans are always settled at fair market value, reflecting the true worth of your NFT.
No Oracle Pricing Concerns
BLEND eliminates the complexity and uncertainty often associated with oracle pricing. As loans are auctioned off, they naturally settle at the market’s interest rates for that specific NFT, ensuring a transparent and market-driven approach to determining your digital asset’s value.
Broad Collection Support and Access to Free Liquidity
With a wide range of supported NFT collections, BLEND opens up avenues for free liquidity to those who know how to navigate the platform. This accessibility makes it an invaluable tool for NFT enthusiasts looking to maximize the potential of their digital assets.