Lender Use Cases and Potential Strategies

  1. Potential for Passive Income
  2. Leverage Knowledge of NFTs to Identify Potentially Attractive Listings
  3. “Loan to Own”
  4. Diversify Portfolio
  5. Opportunistic Lending
  • Flowty loans are “one-sided” in that Lenders do not benefit when collateral goes up in value, but they are subject to capital loss if collateral falls in value. Especially in volatile markets, long-dated, one-sided transactions are much riskier than short-dated alternatives. Please keep this in mind when evaluating listings on flowty.
  • If a Borrower defaults and you receive underlying collateral instead of a repayment, it may be difficult and time-consuming to sell.
  • Importantly, Lenders should not assume that collateral received is guaranteed to be worth a certain amount. NFT markets can be illiquid and highly volatile.

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