Get your P2P loans situated with Yawww
In the NFT marketplace, users will usually place the NFT they don’t intend to keep on the market for a price to sell to make a profit. The user will then make a profit from the secondary sale of an NFT, with NFT loans the process becomes a bit of the opposite. Yaww, a web3 company that built the first escrow service peer-t-peer NFT trading platform, and touts itself as the “safest place on Solana to trade P2P NFTs”, has created a new trading system that aims to create more favorable outcomes when using NFTs to create liquidity.
As explained on the official Yawww Twitter feed NFT loans will be decentralized with negotiations being made on Discord and take place using the NFT you want to keep and not the ones you want to sell. The NFT is used as collateral in exchange for liquidity. The borrowers can then specify the terms of the loan such as the amount, interest rate, and duration. The team at Yawww believes that matching a holder with a proper lender based on mutual appreciation of the art will benefit both sides, as stated in their thread discussing the system:
Why do we think a a P2P product for NFT Collaterization make more sense than any valuation algorithm? This is because we believe beauty is often in the eye of the beholder. The value of any NFT can be affected by traits, rarity score and a individual’s taste.
Why do we think a a P2P product for NFT Collaterization make more sense than any valuation algorithm?
— Yawww | #1 P2P Trading Platform for Solana NFTs (@YawwwNFT) April 8, 2022
This is because we believe beauty is often in the eye of the beholder. The value of any NFT can be affected by traits, rarity score and a individual's taste.
The system hopes to utilize a P2P ( peer-to-peer) system in facilitating their trades and providing the holder with “more favorable trade rates”. The team hopes to provide NFT holders a way to get liquidity without sacrificing their favorite NFT and possibly collateralizing their NFT at a price that is fair and not just below the floor.
It can be noted that the total volume of trade on Ethereum has far surpassed $95 million and thus those who are aware of the benefits of Solana definitely see why something like this could potentially be very big.
The project is set to launch today April 11, 2022