How to use NFT Loans V2

Brace yourselves for the whole new world of possibilities unlocked by the NORD NFT Loans V2!

We are extremely thrilled to share that Nord NFT Loans V2 is now live! In this guide, we will go through each of the steps involved in borrowing as well as lending so that you can get a seamless experience of our product Nord NFT Loans V2.

Please follow this detailed guide step by step for each functionality to understand the dynamics involved. Enjoy, and experience the power of NORD NFT Loans V2 in the most exciting way. Remember to join the NORD community to drive DeFi adoption to the mainstream, as we are always excited to hear from the community.

Nord NFT Loans is supported only by Chrome and Brave browsers, and it only works on desktop with Metamask and other wallets which support the WalletConnect feature.

Let’s get started!

Nord NFT Loan V2 Key Updates

Pro-rata vs Fixed interest bid option for Lenders

In a Fixed interest rate bid, borrowers need to pay the entire interest amount to the lenders even if they pay back the loan amount well within the loan period. In the Pro-rata option, the lender provides money to the borrower on a pro-rata basis which means the borrower only needs to pay back the loan amount with the proportional interest rate required.

For Example, Alex is ready to take a loan from the Bob on Nord NFT Loans platform against his NFT. Let’s say the agreed amount for the NFT Loan between Alex and Bob is $1000 at a 10% interest rate for 10 weeks. Let’s say Alex can pay the amount back with interest within 5 Weeks.

Following are the interest amount that needs to be paid by Alex to Bob in each of the scenarios:

Fixed interest rate option: 1000*(10/100) = $100 interest amount payable to Bob

Pro-rata interest rate option: 1000*((10)(5/10)(1/100)) = $50 interest amount payable to Bob

Multi-Token support for lenders

We aim to accommodate thousands of tokens to Nord NFT Loans in the future. We’re introducing multiple token support in Nord NFT Loans V2 for lenders. Now, lenders can provide money with their current token holdings to offer loans to NFT holders.

ERC-1155 Compatability

Tokens standards like ERC-20 and ERC-721 require a separate contract to be deployed for each token type or collection. This limits certain functionality by the nature of separating each token contract into its permission address. To keep up with the best practices, we are making Nord NFT Loans ERC-1155 compatible.

UX improvements

One of the core principles of the Nord Finance platform is to provide the best user experience to investors. We’re following our core principle and bringing you new UX improvements. Now, You can lend and borrow easily and intuitively.

Setting up and Connecting your Wallet

Needless to say, in order to seamlessly explore NORD NFT Loans V2, the user will be required to set up a MetaMask Wallet or a wallet that supports WalletConnect with tokens available in it.