NFTBank operates NFT pricing for X2Y2 loans

December 19, 2022 – Seoul, Korea

NFTBank joins forces with X2Y2, the third largest NFT marketplace on Ethereum and a new platform for NFT lending.

Over the past two years, NFT funding infrastructure has emerged along with the rise in popularity of NFTs. Extending beyond NFT marketplaces and aggregators, recent trends show NFT-backed loans, NFT rentals and NFT derivatives – platforms serving trading activity for NFTs such as collectibles.

Following this trend, X2Y2, the third largest NFT marketplace in the world with a combined trading volume of over $950 million, launched its own NFT lending platform in September.

X2Y2 Loans is a P2P (peer-to-peer) lending platform, where individual NFT holders meet with an individual liquidity provider to settle a loan period. The two parties negotiate the loan period based on the value of the NFT, such as LTV, interest and the duration of the loan.

While NFTs are not the most liquid assets, NFT-backed loans help solve this problem by unlocking liquidity even when a holder cannot sell their NFTs.

But in this case it becomes extremely important to know the exact value of NFT. Loan terms are negotiated based on the value of individual NFTs, and recognition of the correct collateral value allows lenders and borrowers to settle on fairer and more varied loan terms.

In an effort to provide its users with accurate NFT price data, X2Y2 partnered with NFTBank, the leading NFT valuation provider.

For a long time, NFT prices have been a complex problem. Not only is each NFT unique, but also sales transaction data is extremely limited. And NFTBank has been trying to tackle this problem from the earliest days of NFTs.

The years of work led to an advanced machine learning-based statistical algorithm to provide price forecasts for individual NFTs with over 90% accuracy. Using information such as minimum price, rarity and bid/ask distribution, NFTBank’s ML model calculates a single price value for a given NFT in a collection.

Today, NFTBank offers price information for over 5,000 NFT collections and makes them available both with APIs and its own dedicated app.

With NFTBank’s valuation supporting each and every NFT listed on X2Y2 loans, users can now make better decisions with much more insight than before when setting loan terms. For example, borrowers can more effectively decide how much to set up NFT to borrow against, and lenders can easily see which NFT to provide liquidity to.

X2Y2 Loans is meaningful in the sense that they are the first marketplace to move onto a loan platform. With more than 3000 DAU, X2Y2 is trusted by many buyers and sellers in the market.

With the loan service at the top of the market, users can make purchase and loan decisions on one platform. Just two and a half months since its launch, X2Y2 became a top three NFT lending platform approaching 8,000 ETH in total lending volume.

Meanwhile, NFTBank has already become NFT’s valuation solution for key projects in the scene.

Recognized for its NFT price information, NFTBank recently integrated into MetaMask’s portfolio DApp, while providing data for Chainlink, NFTfi, Pine, Stater and Unlockd Finance. NFTBank is supported by Hashed, DCG and other partners and investors.

About NFTBank

NFTBank is an NFT portfolio management tool and valuation engine, allowing users to make informed decisions about their NFT portfolio and enabling advanced DeFi use cases.

NFTBank’s ML-powered NFT valuation engine covers over 5,000 projects with high accuracy. You can find more information about NFTBank here.

Contact

Jen Kim, product manager at NFTBank