Wing Finance launches NFT pool, which allows users to unlock values
Interest in non-fungible tokens (NFTs) is growing. The technology has caught the attention of millions around the world, from crypto enthusiasts to more mainstream audiences, which has created branding opportunities for famous names such as Louis Vuitton, Gucci, Tommy Hilfiger and Mercedes-Benz.
Recent DappRadar statistics show that NFTs for the wallet trade have expanded from around half a million in 2020 to 28.6 million in 2021. Until now, however, the underlying security associated with NFTs has been locked in the owners’ wallets.
Wing Finance solves this problem, offering competitive APR awards via its new NFT pool that supports six blue-chip NFT collections: CryptoPunks, Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), The Meebits, Azuki and Clone X.
Wing: Pioneering NFT lending
As one of the first players in the NFT lending pool market, Wing is pioneering a unique, innovative method of unlocking NFT’s value.
Wings NFT pool uses a peer-to-pool lending model: Users can deliver Ether (ETH) in the asset pool to provide liquidity to the lending pool. Vendors can earn ETH interest from borrowers and pWING – an ERC-20 protocol variant of Wing Finance (WING) – incentives from the pool. Users can borrow ETH by providing NFTs as collateral, and borrowers can earn pWING incentives subject to interest.
Collateralized NFTs enter the NFT collateral pool, and borrowers receive a similar functional NFT. When calculating the health factor – ie the numerical representation of the collateral of the deposited assets against the value of borrowed assets – and liquidation, the NFT prices are calculated from the minimum price, which means that buyers can potentially buy the cheapest NFTs through the settlement market by 20%.
NFT lenders must take mortgage value into account to ensure the security of their assets. The Wing NFT pool calculates the time-weighted average floor price to filter price fluctuations from OpenSea and LooksRare to optimize fairness.
Insurance pool mechanism explained
Wing’s insurance pool mechanism sets it apart from other crypto-lending platforms by ensuring underlying asset security for NFT borrowers and the project as a whole. WING token holders can earn WING incentives by ensuring pool safety.
Like existing flash pools, the NFT pool takes advantage of Wing’s insurance pool to protect lenders from market volatility that could lead to under-collateral lending – a risk management feature that lacks much of the decentralized financial area (DeFi).
A new approach to unlocking values
The NFT pool gives users a new method of unlocking NFT values without having to sell them and opens up DeFi lending and lending to many new users, so that they can use their NFT portfolios as loan security. Wing wants to lead the NFT security area to revolutionize the expanding market as one of the first DeFi protocols to support this lending and lending mechanism.
Wing distributes the NFT pool on the Ethereum chain for easy access and plans interoperability across chains in the near future. The NFT pool will eventually utilize other blockchains such as Polygon and Solana to help Wing become a credit-based DeFi platform across chains. The Wing Decentralized Autonomous Organization (DAO) may also propose and vote for further expansion of NFT support to include more blue-chip NFT collections.
The NFT pool’s participation mechanism is designed to be as simple and accessible as possible for lenders and borrowers. When users join Wing DAO, other NFT holders can vote on projects they support with WING tokens.
About Wing
Wing is a credit-based decentralized lending platform across chains. Through its partnerships, Wing explores credit-based, under-mortgaged, synthetic and security token lending markets. As a DeFi platform dedicated to lending digital assets, it supports cross-chain interactions for a variety of DeFi products.
Visit Wing.Finance to learn more about Wing or the NFT pool. See its Medium post, stay tuned Twitter and join the community on Telegram.
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