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Borrowed $1.3M with MAYC NFT as collateral, will it be repaid?

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As they have become more popular, NFTs have been increasingly used as collateral for loans. Now, entire platforms are set up to allow people to leverage their digital assets to borrow crypto or fiat currency.

One of the latest stories in the NFT-backed lending sector $1.3 million worth of Ethereum which was borrowed by a user identified simply as ‘piece’. The loan was secured by two NFTs from the Mutant Ape Yacht Club as collateral.

The expensive loan was facilitated by NFT lending firm Arcade who confirmed to the press that it was a non-recourse loan. This means that if the loan defaults, the platform reserves the right to seize assets.

The terms of the loan determine that 1,044 ETH Payable within 90 days at 18% APY. According to its CEO Gabe Frank Arch – classCrypto markets are stabilizing and allowing those in it to access the loans they need while leveraging their assets.

“In this market climate it’s great to see funding these loans and more happening all on-chain through DeFi. Prices have stabilized somewhat, and volatility has decreased, so lenders appear willing to underwrite larger loans. At the same time, Mega Mutants are an incredibly rare resource“

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*All investment/financial opinions published by NFT Plaza are derived from the personal research and experience of our site moderators and are intended as educational material only. Individuals should do thorough research on any product before making any type of investment.



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