NFTs

Using NFTs as Collateral

The NFT as a Collateral feature in RainFi allows users to leverage their NFTs to borrow tokens. This option provides flexibility for NFT holders who want to unlock liquidity without selling their assets. Below is a step-by-step guide:

1. Providing NFT as Collateral

  • From the Borrow Menu, users select the NFT option.

  • The user chooses an NFT from their wallet to use as collateral.

2. Selecting Tokens to Borrow

  • After selecting the NFT, users choose the token they want to borrow.

  • Once the token is selected, a dropdown window displays a list of available pools.

3. Viewing and Sorting Pools

The logic for pool sorting and filtering mirrors the process for token borrowing:

  • Default Sorting: Pools are initially displayed based on predefined criteria.

  • Filter Icon:

    • Located at the top-right corner of the pool list.

    • Multi-Select and Order: Users can select multiple filters and arrange their priority. Pools will then be sorted based on the specified filter order.

    • Available filters include:

      1. Loan Amount: Sort pools by the maximum loan amount available.

      2. Longest Duration: Pools with the longest loan terms appear first.

      3. Shortest Duration: Pools with the shortest loan terms appear first.

      4. Interest: Sort by the interest rate, from lowest to highest.

      5. APR: Sort by Annual Percentage Rate (APR).

4. Pool Information Tooltip

  • Each pool has a small "i" icon next to it.

  • Mouse Hover: Hovering over the icon displays detailed information about the loan, including:

    • Total Interest: The amount the user will pay in interest over the loan term.

    • Fees: Any additional fees associated with the loan.

This feature provides NFT holders with a seamless way to access liquidity while retaining ownership of their digital assets, making it an ideal choice for leveraging high-value collectables.

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