Our world has evolved primarily in the field of technology and most of the efforts are gravitated towards digitizing every element. The current boom is majorly for digital assets, including images, GIFs, songs, or videos. Most importantly, NFTs make digital artworks unique and therefore sellable. Now, artists, musicians, influencers, and sports franchises are using NFTs to monetize digital goods that have previously been inexpensive or free of charge. The technology also responds to the art world’s need for authentication and provenance in an increasingly digital world, permanently linking a digital file to its creator.
NFTs have become one of the most revolutionary crypto-used cases of 2021, with overall sales up to 55% since 2020, from $250 million to $389 million. As of March 2021, it had further exponential growth and is estimated to mark at $6B by the end of the year.
According to the NFT Report 2020, published by L’Atelier BNP Paribas and Nonfungible.com, the value of the NFT market grew by 299 percent in 2020, when it was valued at over $250 million. Moreover, the first few months of 2021 have already seen astonishing sales even before the sale of Beeple, which sold as an NFT at a record-breaking $69.3 million, the third-highest price achieved by a living artist.
Apart from evolving upon what the crypto ecosystem calls “over-collateralization”, TribeOne’s fundamental belief is that the NFT market is and will continue to expand in the years to come.
With the current social media wave of NFT sales, there is no platform available for users to get access to NFTs, either to borrow or purchase against.
The evolution in the lending and borrowing space can be witnessed by the incorporation of NFTs. An NFT (non-fungible token) is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable. NFTs make digital artworks unique and impossible to replicate therefore making them profitable.
The lending-borrowing market has been stuck in a whirlpool of challenges for years. It is not foreign that the current credit system is fundamentally flawed, but that’s where TribeOne steps in by introducing lending and borrowing in innovative ways.
Providing the user with a seamless experience in the field of crypto by introducing innovative products. Allowing users to get loans against their NFTs as collateral or get loans to purchase NFTs.
Keeping an optimistic, visionary & revolutionary approach, TribeOne will enable users to borrow/purchase, and lend involving NTFs. Users will not only have the liberty to either get a loan to mortgage NFT, or through proposing NFTs as collateral to get a loan but can also contribute to invest in a NFT pool and get returns out of it.
We are building a feature in the TribeOne financing platform that will help users unlock the value of their NFT assets without losing ownership. Our main goal is to connect the DeFi ecosystem to the NFT market where the users can get loans against their NFTs or be able to acquire a loan to purchase a certain NFT. This feature will be available only for users who will have a stake on our platform.
TribeOne’s Financial platform will be non-custodial and will facilitate transactions between lenders and borrowers, where the borrower is seeking to purchase a new NFT or take a loan against an existing NFT. Below are TribeOne’s NFT centric products which will be offered to users.
The borrower will submit a request to purchase the NFT where it will be evaluated by the 3rd Party appraiser, the details will then be provided to the community to vote on the loan approval based on the LTV adjudicated on the 3rd party appraisal. If the loan is rejected, the borrower who requested the loan will have a nominal part of the staked tokens held, burnt to settle the cost of the appraisal. If the loan is approved by the community, the loan is disbursed and the purchase is made for the NFT, which will remain locked in the smart contract till the loan is repaid in full.
The borrower will submit the request along with the NFT held, which is then evaluated by the 3rd Party appraiser. If the loan is rejected, the borrower who requested the loan will have a nominal part of the staked tokens held, burnt to settle the cost of the appraisal. If the loan is approved by the community the loan is disbursed, and the NFT will remain locked in the smart contract till the loan is repaid in full.
Investors who contribute into the NFT Invest Pool are repaid by borrowers via installments and are repaid equally. When the asset is liquidated, TribeOne will sell the NFT asset through our partners, and the received value will be equally split between the pool contributors.
The below diagram outlines the value flow between NFT holders and the TribeOne platform: