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NFT Lending Platform Arcade Now Lets You Borrow NFT Liquidity Using Rolex Watches As Collateral

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Rolex
Rolex

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The Arcade Protocol, an application facilitating non-fungible token liquidity, has expanded its support to include Rolex luxury watches. Crypto investors can now borrow crypto liquidities using their luxury watches as collateral. Arcade joins other notable crypto firms like Binance and Blur NFT market platforms.

Borrow NFT Liquidity Using Rolex Watches As Collateral

In a June 15 blog post, Arcade Protocol confirmed expanding its service offering to allow crypto investors to borrow NFT liquidity using their luxury watches as collateral. The borrower can then tap into global liquidity using their tokenized watches rather than taking a predatory loan at their local pawn shop.

Founded in 2021, Arcade is a decentralized finance platform that enables liquid lending markets for NFTs on Ethereum. The platform’s lending marketplace provides a venue for NFT asset owners to access liquidity on otherwise idle assets and enables ERC-20 token holders to earn yield.

Under the new service offering, non-fungible token collectors can now borrow crypto liquidity and use their luxury watches as collateral. These Rolexes are hence sent to an escrow company, ‘Arcade,’ which then sends back NFTs representing ownership of the watches.

In the event the NFT borrowers default, the crypto lender can use the NFTs to redeem the original watches. An anonymous NFT collector who took a $14,500 loan on Arcade Protocol using his two Rolex watches at a 12% interest fee is a recent example.

The NFT Lending Market Health

The non-fungible token financing continues gaining recognition in the nascent NFT sector. Last month, the leading NFT marketplace Blur launched its Blend (short for Blur Lending), a peer-to-peer lending platform that allows NFT collectors to borrow crypto liquidity using their NFTs as collateral.

Shortly after, Binance, a digital market platform for non-fungible tokens and a subsidiary of the Binance crypto exchange, launched its feature called Binance NFT Loan, which allows holders to secure ETH loans using their NFTs as collateral. Binance NFT allows investors to borrow Ethereum liquidity using NFTs like Bored Ape Yacht Club and Mutant Ape Yacht Club NFTs.

Earlier this month, Robox, a crypto startup providing non-fungible token traders and collectors with leveraged trading without compromising collectability, partnered with Magic Eden to launch a similar NFT lending feature. The new feature enabled users to pay 30% of the NFT listed and receive 70% financing.

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