The NFT market continues to expand with new projects entering weekly. Art collectible NFTs, in particular, have fetched record high sales recently. The well-known artist Beeple recently sold a one-of-a-kind NFT for over $6 million.
Studies conducted by the research firm, Statista recorded the NFT market cap at $338 million in 2020. This year has seen the market expand to record highs. While this is excellent news for collectors, it’s not necessarily great for the market in its whole due to the way the NFT market works.
NFTs are different from cryptocurrencies in valuation and fungibility terms. A cryptocurrency is fungible, therefore, everyone who holds a coin, holds the same amount of value on the network. The higher the market cap, the higher the value of the coin in most instances. This is the normal way in which the market value of a coin is dictated.
However, the unique nature of NFTs means that they all have their individual market value. These values are often attributed by buyers on a more personal level rather than a purely technical approach. This is usually the case when discussing rare art NFT collectibles. consequently, hi-end NFT investors appear to be HODLing these valuable digital assets.
NFT HODL Throttle
One of the biggest problems facing the NFT community currently is locked liquidity. Yes, it’s good the value of NFTs goes up when more people buy and HODL. However, the downside is that due to the structure of the investment, it locks up a massive amount of liquidity.
These funds could help fuel more market growth and higher ROIs for skilled investors. In the end, it creates a problem for the entire market cycle. The developers behind Stater introduce a unique way to unlock this capital and free up millions.
A New Approach
Stater is a non-custodial Peer-to-Peer NFT ecosystem that offers unique lending services. NFT HODLers can use their NFTs as collateral for loans on the platform. The open-source protocol matches buyers and sellers autonomously and acts as a non-custodial escrow between lenders and borrowers. In this way, Stater allows NFT HODLers to access their liquidity while still retaining ownership of their digital assets.
Lender Protections
Stater retains the collateral NFT and upon the completion of the loan requirements, the NFT is returned. Both parties are protected by the structure of the protocol. Liquidity providers receive rewards. Notably, if the borrower misses three payments, the NFT is paid to the lender. The lender can decide to take the NFT, take repayment in STR, the platform's native token, or a combination of the two.
Borrower Benefits
Borrowers gain a lot when they participate in Stater's network. They can scroll through all the lending options available and select the one that fits their particular criteria. This gives borrowers the option to pick and choose their best investments. You can even bundle your lending and create loan packages that include multiple assets.
Transparency
Stater offers a transparent NFT lending experience to users. The interface provides you with all the vital data you need to make an informed decision. You can see the loan specifics including the number of installments, the asset’s value, the total borrow amount, and your loan duration.
How Does Stater Value My NFT?
Stater introduces a proprietary Fair Value Oracle to determine the current value of your NFT. The network evaluates multiple categories to come to its value. Your NFT will be appraised based on a combination of a comparison-based model and a game-specific model.
The comparison model will take into account other NFTs with similar technical specifications, value, and demand and look at their total sale price. It will then calculate an average price. The game-specific pricing model will look at the market cap, volume, market trend, the total number of assets. It will also take into consideration the NFT’s past transactions and ownership history. Even the number of past transactions and minted dates play a factor in determining this value.
Fair Lending Oracle Adds New Functionality
The responsive nature of the Fair Lending Oracle provides users with new functionality such as the Pool Lending feature. Borrowers can get an instant loan for their NFT assets using this feature. It’s straightforward and requires no technical know-how. You simply need to enter the required criteria into the platform and the Fair Price Oracle determines your NFT's value. If you agree to the terms, the loan is good to go.
Liquidity Mining
NFT HODLers can also participate in the network simply by providing liquidity. You can commit liquidity in the Staterliquidity pool currently. Users receive rewards that are paired daily from this maneuver. Liquidity mining is considered easier than trading because there's no need to learn technical trading strategies and you receive more consistent rewards for your efforts.
Stater NFTs
Stater has released a set of limited series custom native NFTs. These unique art-themed NFTs also provide the holder access to some cool features. For example, the company does airdrops to its HODLers. You also receive some significant discounts for supporting the network. Of course, you can lend and borrow these NFTs within the Stater ecosystem as well and access more investment opportunities.
Stater is Run by Its Users
Stater is a decentralized protocol that provides the community with the power to control its development. STR holders can submit proposals to the community for a vote. This strategy allows users to select core features such as the fee structure, feature additions, and more. More importantly, it helps to create a community of users who stand behind the project and avoid problems like hard forks in the future.
Stater - Free Locked Liquidity Now
Stater, leverages some proprietary systems, a native utility and governance token, STR, and top DeFi features to create an advanced ecosystem. NFT HODLers are sure to appreciate a way to free up the liquidity kept in these valuable tradables. For these reasons, Stater is ideally positioned within the market trends. You can find out more about the project here.
Disclosure: This is a sponsored post. Readers are encouraged to conduct further research before taking any action. Crypto Adventure does not endorse any crypto projects cryptocurrencies listed, mentioned, or linked to on our site.
