market cycle

The Question of Liquidity

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Time Stamp: December 30, 2022 5:29 PM - Modified On: December 30, 2022 - Published By:
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Republished By Plato

While many people consider valuation to be the most challenging aspect of NFT lending, the real issue is liquidity. When taking an NFT as collateral for a loan it would be a recipe for disaster to think it can be sold easily at all points in the market cycle. During 2021 NFTs experienced a huge uptake in their popularity. Some said this surge in demand was the cause of increased gas fees on the Ethereum network. However, in between the two peaks of this surge, there was a terrifying liquidity

A DeFi Drought Crisis

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Time Stamp: August 30, 2022 3:37 PM - Modified On: August 30, 2022 - Published By:
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Republished By Plato

Just when we thought it was safe to breathe a sigh of relief from all the crypto liquidity contagion, another one started to appear last week with BendDAO, an NFT borrowing, and lending platform. Due to structural faults in the way the protocol had been created there came a point when it was perched on the brink of insolvency. What we’ve witnessed over the past few months has been a clash between the overconfidence of some project founders and the realities of the emerging crypto market. It’s an unusual dynamic