How to Build Passive Income with NFT Lending
By Tobi Opeyemi Amure
AI summary of the source article
NFT lending enables investors to earn interest by providing cryptocurrency against NFT collateral via peer-to-peer or pooled models. However, lenders face risks such as borrower defaults, falling collateral valuations, liquidity constraints, and platform closures.
Key facts
- NFT lending primarily uses peer-to-peer lending models like Gondi or pooled liquidity models like BendDAO.
- Blur announced on October 12, 2026, that its Blend platform would stop matching new loans on November 12, 2026.
- Risks affecting lender earnings and principal include borrower defaults, falling collateral values, illiquidity, and smart contract vulnerabilities.
Source excerpt · FinanceFeeds
Non-fungible tokens (NFTs) are commonly associated with digital art, collectibles, and in-game assets. However, they can also serve as collateral for cryptocurrency loans, creating another opportunity for investors to earn interest on digital assets. NFT lending connects NFT holders who need liquidity with investors willing to provide cryptocurrency in exchange for interest. Instead of selling the…