Stater Lets You Use Your NFT to Get Loans
One of the hardest parts of crypto investing is simply locking the funds up and waiting. Unless you’re a profitable trader, you’re probably buying into tokens and coins for long to medium-term gains. This scenario leans harder towards long-term strategies when you discuss NFTs.
Non-Fungible tokens differ from regular cryptocurrency in some major ways. For one, NFTs represent something unique. It can be art, video clips, cars, or even real estate. As such, the value for a single NFT can be very high compared to regular cryptocurrencies. There are NFTs in the market today that cost millions.
Average NFT Investors
Of course, most people aren't spending a million on one token, but the number of investors spending thousands on these collectibles is growing rapidly. In the current market scenario, these investors purchase, trade, earn, or win NFTs and the liquidity is locked until they sell the NFT. However, selling the NFT isn’t the best idea either as these tokens continue to skyrocket in value.
So what do you do now? A unique project called Stater has introduced a new option for collectors that could help to eliminate this situation in the future. Stater is NFT lending protocol and marketplace. The network is decentralized, non-custodial, and operates in a Peer-to-Peer manner.
Anyone can take their NFTs to the platform and use them as collateral to get a loan. The platform offers two different lending services to fit your needs. The fastest of the two is the Pool Lending feature. Users provide liquidity to this pool in exchange for STR tokens that they can stake and receive discounts using. These funds are then available for borrowers to lend against.
Oracles Make it All Possible
The Pool Lending process relies on Stater's fair market oracle to provide you with the value of your collectible. This off-chain protocol examines all the core characteristics of your NFT. It will look at specific items such as the properties compared to other assets, past transaction history, minted date, market cap, volume, market trend, and the total number of assets in the collection.
After evaluating these items and comparing your token to other similar tokens and their value, you are provided with instant loan terms. If you accept the loan, your NFT will be locked in a smart contract. Stater will hold the NFT and act as an escrow until the loan terms are met. Once the payments are complete, you will receive your NFT back. If you miss too many payments, your NFT will be liquidated.
The main lending process will provide you with more flexibility. The core lending protocol allows you to set terms and other vital options regarding your loan. You can scroll through other options offered and choose the one that best fits your needs. You can even create loan packages utilizing single or multiple assets.
Why NFT Lending Opens Doors
Stater users can reenter the market using the original NFT as collateral. This added capital will help to drive the industry’s market cap higher. You retain ownership of your original investment when you use this strategy. If done correctly, you can use the same liquidity to build up a healthy crypto portfolio.
STR Token
The STR token plays a vital role in the network. Users can HODL this token and gain voting rights. They also receive loans and fund lending pools using this token. Additionally, you can stake STR and receive a 50% discount from fees as a borrower or lender. You can only stake 1 Stater NFT at a time for these rewards.
Liquidity Mining
Those interested in participating in Stator as a lender can do so via the Liquidity Mining mechanism. The more you stake and the longer your stake, the more rewards you earn. Notably, these rewards are paid out daily directly to your ERC-20 compliant wallet.
Stater NFTs
Stater goes a step further by issuing its own custom native NFTs. Uniquely, Stater NFT holders get discounts on the platform. They can also use these tokens to take out loans or provide liquidity to other borrowers. There are some competitions and Airdrops that qualify as well.
Lender Protections Built In
If you choose to provide liquidity and the NFT borrower defaults, you have a couple of different options. You can decide to keep the NFT directly, or take a partial payment and sell the NFT on the market. There is also the option to receive the funds in STR tokens.
Keeping it Simple
One of the coolest features about Stater is all the lending is valued in Ethereum. Using an Ethereum standard by default helps lenders and borrowers to better understand their terms. The ETH listings are the default setting but there is also the option to track everything in STR.
Let the People Decide
STR holders can participate in the community in many ways. One feature they gain is the ability to vote on all vital network upgrades. You can submit your proposal to the community and if it passes, the changes are put in motion. This strategy allows the community to decide what's the best way to spend the community bank.
Security Is Critical
One of the biggest concerns to collectors is security. As new NFT platforms continue to enter the market it’s vital that you stick to open-source projects. These platforms provide the community with their coding so you can have confidence in the true functionality and actions of the network. Stater has gone a step further and sought out third-party auditing firms to confirm the validity of their coding.
Stater Hits a Niche Market in a Niche Market
Stater has found a way to serve NFT investors and contribute to the growth of the entire sector. Their lending protocols unlock stale liquidity in new ways. In this way, investors don't miss out on other opportunities in the market.
