Understanding NFT collaterisation on Strip Finance.

in Using an NFT as Collateral for a Loan‌, the value proposition for owners of NFTs follows the same principles in any lending/borrowing market. Having access to capital provides owners with access to liquidity for various ends, such as pursuing other investment opportunities, personal spending or hedging against market movements.
The possibilities of assets that can be tokenized via the NFT standard is limitless, with use-cases such as land deeds, art, certificates, digital domains, music & financial assets being a few.
‌Strip finance provides owners of this asset class with access to capital to pursue other opportunities while still maintaining ownership of their coveted NFTs.
The critical element needed for the Strip platform to work is the matching of borrowers with lenders. In order to bring these two parties together in an effective manner, there must be both centralized & decentralized solutions for addressing two problems;
Valuing the NFTs: Art & Financial Method of aggregating & deploying capital
Valuing Art NFTs- The Human Eye
‌Granted, art NFTs are unique and distinct works Often, an individual’s role is vital when assessing the value of these assets.

‌STRIP has identified a solution where a faster mechanism for lending out capital can be achieved. For this process, specific pools would have a more significant amount of liquidity (crowd aggregated) than what an average individual could provide. Given this efficient means of capitalizing the lending pools, a borrower will take an instant or flash loan. The amount of capital available for an instant loan will be the amount pledged by the underwriter in case of a default or sudden drop in the market price.
In regards to valuing these financial NFTs, methodology more straightforward than that of art, granted the quantitative (not qualitative) nature of these instruments (they are derivatives of a project’s token/assets, not merely an art collectible).

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