Use NFT from CRAFT as collateral

hi Baln community,

Any chance to leverage NFT from Craft as collateral as proposed by icon treasury they will fix the buying back price for bronze NFT at 15 ICX. We can use that basis for collateral asset?


It is interesting to be able to collateralise NFT. However, someone will have to always put up an offer to be able to maintain the minimum peg. And what happens if the NFT goes up in value?

Lets say I have 1 BALN Gold Genesis NFT. The creator of it has a buy back of 15 ICX. If the perceived value goes up, it will always be around 15 ICX which may not be good too unless someone offers to lock up more of their ICX to collateralise it but who will be willing to do that?

  1. Not all sellers are willing to do buyback.
  2. If they do buy back, it would likely be at cost price. This means other users will be the one likely to keep collateralise it but why would they do that?

If you can solve #2, it may be possible and be a huge integration that will be very helpful.

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i just checked Marcus tweet about the punk .

he from icon previously. he form this lending NFT thing i think. very interesting if he can come to Craft and Balanced to share his experience.

Personally I am a bit concerned about using NFTs as collateral and would prefer to see how this pans out especially during a bear cycle before adding it to Balanced, we have many other high-quality collateral options coming. NFTs are highly illiquid, so liquidation events for those with an NFT as collateral could put Balanced into debt, unable to payoff the bnUSD backed by the NFT.


Agreed with that. Until there is pool staking like what marcus suggest which back by stable coin then consider doable , may be in future.