How to use NFT Loans V1
Last updated
Last updated
Brace yourselves for the whole new world of possibilities unlocked by the NORD NFT Loans v1!
We are extremely thrilled to share that Nord NFT Loans V1 is now live! In this guide, we will go through each of the steps involved in borrowing as well as lending so that you can get a seamless experience of our product Nord NFT Loans V1.
Please follow this detailed guide step by step for each functionality to understand the dynamics involved. Enjoy, and experience the power of NORD NFT Loans V1 in the most exciting way. Remember to join the NORD community to drive DeFi adoption to the mainstream, as we are always excited to hear from the community.
Nord NFT Loans is supported only by Chrome and Brave browser, and it only works on desktop with Metamask and other wallets which support WalletConnect feature.
Let’s get started!
Needless to say, in order to seamlessly explore NORD NFT Loans V1, the user will be required to set up a MetaMask Wallet or a wallet that supports WalletConnect with tokens available in it.
Go to https://app.nordfinance.io
Click on the “Connect” button located on the top right corner of the page to connect your wallet.
Select MetaMask option to connect with MetaMask wallet.
If you are using any other wallet which supports WalletConnect, then select WalletConnect option instead.
Scan QR Code displayed with the wallet app and connect to an account.
Click on connect in the MetaMask pop-up and you should be connected to the Nord Finance DApp!
You should now be successfully connected to the Nord Finance DApp! We will next take a look at the lending and borrowing process involved in NFT Loans.
Click on the borrow option in order to begin the process of taking a loan against your NFT.
You will then see a list of your NFTs currently supported by NORD NFT Loans V11, that you can take a loan against. Click on the “+ Loan” button on the NFT you wish to use as collateral and take a loan. Users may fill the whitelisting form to get their NFT Collection whitelisted.
A preview of the NFT is shown and a link to view it on Open Sea is also available. Click on the “Create Loan” option to proceed further.
The user will then be required to sign a message to put up the NFT as collateral.
The NFT will now be successfully listed on the marketplace for interested lenders to put a bid on. The user can later revisit to check for any new bids.
Once any new bid of interest is available, the user can accept the same by clicking on the “Accept” button next to the bid details. This will launch a modal displaying the bid details, and the option to confirm bid acceptance
The user is then required to sign the transaction for approving the ERC721 transfer from the user account to the NORD NFT Loans escrow account.
This completes the borrowing process, and the ERC20 tokens will be transferred to the borrower’s account.
At the top right corner section of the screen, the option to “Cancel Loan” is present.
Upon clicking the “Cancel Loan” button, the transaction to confirm the same has to be signed by the user.
Once the transaction is confirmed, the NFT Loan is canceled and the NFT is no longer listed for bids.
The user can choose to repay the loan at any given point in time. Under the My Loans tab, the button to “Pay” the loan back can be clicked.
The “Pay Loan” button located next to the loan details is to be clicked. This launches a modal where the user can confirm the details of the loan repayment and click “Continue to Pay”.
The MetaMask pop-up to first approve the spending limit for the ERC20 token is requested. Followed by which the transaction to repay the loan has to be confirmed.
After the transactions are confirmed, the loan repayment will be successful.
Click on the Lend option in order to begin the process of lending a loan for an NFT.
The list of NFTs currently open to bidding is displayed. The user may click “Bid” on any NFT of interest.
The option to “Bid For Loan” is available. Clicking on it opens a modal where the user can enter the details of the loan proposal. Currently only USDC token is supported.
NOTE: Please do keep in mind the loan is not instantly lent and is instead subject to acceptance by the NFT Owner.
Upon clicking “Submit Bid”, the user will be first required to approve spend limits on the ERC20 token. Followed by which the user will be required to sign a confirmation message.
The Loan bid for the NFT is now placed. The user may revisit to check the status of the loan acceptance and repayment under the My Bids and My Loans tab respectively.
Once the user’s bid is selected, it is displayed in the My Bids section.
The process to change the bid for an NFT is very straightforward. The option to “Change Bid” is located near the Bid Details. Clicking it will launch a modal and the user can click “Continue” to confirm the user wishes to proceed with changing the bid.
Similar to placing a bid for the first time, the user may enter the details of the bid and click on “Submit Bid” to continue.
The user will be prompted to sign transactions. First, to cancel the previous bid. Next, depending on the spending limit approved - the user may be prompted to approve the spend limits.
Lastly, the signature of the user is requested to confirm the new bid.
The process to cancel any bids placed is very short and simple. The option to “Cancel Bid” is located on the top right of the screen.
Upon clicking “Cancel Bid”, the user will be required to sign the transaction approving the same.
After the transaction is confirmed, the bid is successfully canceled.
In case the borrower defaults and does not repay the loan in the stipulated time period, the lender may seize the NFT staked as collateral. The option to “Seize NFT” is present in the My Loans section of the lender’s dashboard.
Upon clicking “Seize NFT”, the user is required to sign the transaction to liquidate the loan and transfer the NFT from the borrower.
Once the transaction is confirmed, the NFT is transferred from the borrower’s to the lender’s account.
