Yes, you can. Despite the fact that NFT backed loans have been there since a long time, there were not much high quality loan providers back then. With Cyan, this has become as easy as swapping a crypto. Both NFT loans and NFT-backed loans are very easy to get when you are on Cyan.
Further, Cyan also helps you repay these loans. You can also earn additional income from the NFTs which then covers the part payment of your NFTs.
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How NFT Loans Work?
NFT Loans are basically the same as other loans. They just keep your NFT as collateral. In case you fail to pay back the due amount, the loan provider is liable to sell your NFT to recover dues.
In Cyan, the NFT Loans are issued mostly at 60% of the appraised value of the NFT. This is because due to the volatility in the NFT markets, the value of NFT might get impacted severely during the loan duration.
Further, if the loan taker, does not return the due amount in time, Cyan reserved the fight to forfeit the NFT as well as older payments, if any.
Types of NFT-backed Loans
NFT backed loans can be of two types: either you are buying NFTs on deferred payments or you are collateralizing your NFTs to get a loan. In both cases, a user is taking a loan from Cyan.
- In the first case, users have the option to stake their NFT as collateral to earn additional rewards or to cover partial payments.
- The second case is where NFTs act as collateral and you get crypto loans.
Why Cyan is the Best Platform for NFT Loans and NFT-Backed Loans?
1. Buying NFT on Loans
If you want the most easiest way of buying an NFT on loan, Cyan might be the most suitable platform that you will get. This is because not only is the NFT buying experience a lot easier and safer than other platforms, Cyan also helps you in case you are not able to pay the loans back. At our platform, you can simply sell the NFTs that are on loan and pay back the dues.
Benefits of Buying NFT on Loan from Cyan
Besides getting loans, the same NFT can get you some additional income too. Buying an NFT on Cyan helps you
Sounds like killing two birds with a stone?
Like cryptocurrencies, some NFTs can also be staked for additional returns. One such NFT collection is the Bored Ape NFTs which allow users to stake their NFTs so that users can get rewards (in ApeCoins).
How to get these Dual Benefits?
When you obtain a NFT-backed loan from Cyan NFT Marketplace, you get an option to stake the collateralized NFT as well.
This helps you get the Staking Reward which can help you pay for the NFT as well.
What makes this even more easier is that you can buy this NFT from the Cyan Marketplace itself. You don’t have to go anywhere else.
Understand with an Example
Suppose you buy a Bored Ape NFT from Cyan’s Marketplace. Now, you have the choice to buy in deferred payments. Assume that the deferred payments are spread across a period of 3 months.
If you want, you can stake the NFT during that period to earn additional income which will also help you cover the NFT payments. Doing so, you are basically buying an NFT at only a fraction of its cost.
How to buy a NFT on Loan in Cyan?
Buy Now Pay Later (BNPL) is a service to allow users to buy NFTs over a 3-month period. After making a down payment, users will make payments every 31 days until the very last payment. There is no need to worry about margins.
- Go to the Account Page.
- Connect your wallet.
- Click on Borrow ETH button near the desired NFT in your wallet.
- Turn on auto-repayments if you like. In case you are low on funds, you will be alerted before the scheduled deduction.
- Submit the transaction. You will need to move the NFT from your wallet (MetaMask or other) to your Cyan wallet.
NOTE: By starting a loan, the user agrees to any missed payments will result in a default of the NFT and forfeiting of all payments made to date.
2. NFT-backed Loans on Cyan
A user can borrow ETH for 20% or 33% of the NFT’s appraisal for 3-months, or 50% of the appraisal for 24-hours.
If you want to use your idle NFTs to generate some cash for any reason, you can collateralize them and get a NFT-backed loan in a few seconds on Cyan.
NFT Backed Loans are also a very easy task on Cyan.
- Just connect your wallet.
- Go to the NFT Loans page.
- Select the NFT that you want to collateralize.
- Submit.
If at any point in time, you wish to sell the NFTs to cover payment, Cyan lets you do that in a single click as well.