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Paddle Finance, a multi-asset defi protocol for bespoke assets, has introduced NFT Money Market, an innovative NFT lending system designed to provide scalable, secure, and capital-efficient liquidity. The launch is combined with a strategic integration with BitsCrunch, a leading provider of NFT analytics and pricing infrastructure. Together, the partnership will allow for a more intelligent and transparent NFT lending experience with the Bellachine network.
What is the NFT Money Market?
NFT Money Market is a market-specific lending model that allows NFT holders to ensure immediate liquidity by opposing their assets through isolated pools. Unlike traditional peer-to-peer lending where loan terms are manually matched, NFT Money Market’s peer tool pool allows users to interact with automated lixty pools tailored to individual NFT collections and payment tokens.
Each pool is uniquely configured based on:
Accepted collateral: Only certain NFT collections are allowed in each pool. Collateral Factors: Defines the borrowing power of an NFT based on a risk profile. Interest rate model: Custom curves for each market based on usage.
This model significantly reduces systemic risk. Because each pool is separated by both asset and collateral types, risk remains included in its market, even if the other pools experience high volatility or liquidation events.
How it works: Designed for control and speed
NFT holders can deposit assets into Paddlefi’s vault system and borrow funds almost instantly, as long as the terms of the loan remain within the permitted threshold. Lenders, on the other hand, donate capital to a particular NFT market that represents their share in the pool and acquires yields over time, and receives it (tokens containing interest).
All loans are open-ended, so you can repay them anytime, giving users the most flexibility. If the borrower’s position exceeds the defined borrowing limits for that particular market, only NFT collateral in that pool is subject to liquidation. Other assets in unrelated markets are not affected.
Why is it important: Addressing the real barriers to NFT financialization
NFT holders have long faced challenges in accessing liquidity due to the inappropriate nature of their assets, inconsistent pricing, and limited support from traditional Defi platforms.
The NFT Money Market addresses these issues directly by eliminating the need for manual loan matching and reducing wait times. Its isolated pool design shields lenders from broader market volatility, but dynamic pricing and tuned collateral parameters improve capital efficiency.
The open-ended loan period allows borrowers to access liquidity without a strict repayment timeline, making the system both flexible and user-friendly.
The role of bitcrunch: the power of smart and risk assessments
Integration of Paddlefi with Bitscrunch price index API provides significant improvements to how NFT collateral is evaluated and managed. The API provides real-time pricing data, allowing for accurate calculation of borrowing restrictions and collateral thresholds. It also supports more accurate liquidation logic by taking into account current floor prices and market volatility.
Additionally, Bitscrunch’s cross-chain compatibility allows for consistent asset valuations across the network, allowing Padolfi to gain liquidity beyond Bellachine. This partnership will enhance Paddlefi’s infrastructure with facility-grade risk tools and open up ways to use NFT in advanced financial applications such as insurance, asset swaps and structured products.
First use cases and ecosystem impacts
The NFT Money Market feature debuted at Bellachine, initially focusing on a large number of high-speed collections of stable teddy, blur, and yetard. Each collection has its own lending pool, reducing exposure to unrelated risks and increasing lender confidence.
The platform’s roadmap also includes expansion into bases such as Match-In and Apekaine and other EVM compatible chains, enabling cross-chain NFT liquidity.
What’s next for Paddlefi?
With the NFT money market as a kickstart, Padolfi is expanding into an economic model that increases bespoke asset liquidity and trading volume without affecting market prices. The protocol also works deeply into Rwafi, allowing the use of actual assets along with NFTS and tokens.
Padolfi is built to become the economic layer of the multichine ecosystem, combined with pushes across bellachines, bases and other chains.
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