There are several NFT collateral platforms that are trusted by many including:
BenDAO is preferred by many big-time collectors, including Franklin. This platform is the first NFT liquidity protocol to support instant NFT-backed loans, Collateral Listings, and even NFT Down Payments.
Also, BenDAO remains transparent with proof of its smart contract audit on-site, as well as a maximum Bug Bounty of up to $1,000,000, if you find a bug in their smart contract.
The main difference between BenDAO and other collateral platforms is that you are lending from a DAO, whereas other platforms are peer-to-peer.
Backed by investors like Coinfund and Flamingo DAO and having partnered with Flow blockchain and Animoca Brands, NFTfi is one of the most trusted peer-to-peer NFT lending platforms.
NFTfi enables borrowers to set their own desired terms and allows lenders to submit counteroffers. Furthermore, the platform does a great job of providing a detailed analysis of the NFTs that are listed as collateral.
By providing the current floor price of projects, a valuation from NFTBank, project averages, and other information about the borrower, NFTfi supplies a transparent platform that can help lenders and borrowers make the best possible decisions.
Arcade is one of the leading platforms for NFT-backed loans. The platform has been featured in some of the leading media outlets including Fortune, Bloomberg, and TechCrunch to name a few, and has the support of investors like GMoney and Pantera.
As a borrower, you can list NFTs with or without terms, and lenders can accept or make offers for loans. In addition, Arcade is the only protocol that allows lenders to make collection-wide loan offers. This means lenders can reach a broader range of borrowers.
X2y2 might be best known as an NFT marketplace. But, you can also use the platform to lend ETH and use your NFT as collateral. Notably, x2y2 does not allow many NFT collections to be used as collateral yet.
Currently, the only whitelisted collections (allowed collections) are:
- Otherdeed for Otherside
So, if you don’t own an NFT from these collections, you aren’t able to use your NFT as collateral to borrow ETH. That said, x2y2 is a trusted platform that has the potential to be a good place to collateralize your digital assets. You can view their audit on-site.