NFTs like art and collectibles are gaining popularity but there are many use cases being built for NFTs beyond those two categories. Whether it’s NFT exchanges working on fractionalization, to valuation services like Upshot working to improve NFT price discovery, we are witnessing the “financialization” of NFTs. Today I wanted to look over some of the more unconventional use cases for NFTs that are being explored. I think DeFi and NFTs can be complementary to one another but we are just scratching the surface on ways they can collectively enhance the value proposition of a protocol.
NFTs in Unsecured Lending
Teller is an algorithmic credit risk protocol for decentralized lending, providing both collateralized and uncollateralized loans. The ability to port credit (trust) into DeFi will be key for moving beyond overcollateralization to more capital efficient designs.