by 
December 19, 2022 – Seoul, Korea
NFTBank partners with X2Y2, the third largest NFT marketplace on Ethereum and an emerging NFT lending platform.
Over the past two years, the financialization infrastructure of NFTs has emerged alongside the growing popularity of NFTs. Moving further away from NFT marketplaces and aggregators, recent trends show NFT-backed loans, NFT rentals and NFT derivatives platforms serving the trading activity for NFTs as collectibles.
Following this trend, X2Y2, the world’s third largest NFT marketplace with a total trading volume of over $950 million, launched its own NFT lending platform in September.
X2Y2 Loans is a P2P (peer-to-peer) lending platform, where individual NFT holders meet with an individual liquidity provider to settle a loan term. Both parties negotiate the term of the loan based on the value of the NFT, such as LTVs, interest rate, and term of the loan.
Although NFTs are not the most liquid assets, NFT-backed loans help solve this problem by freeing up liquidity even when a holder cannot sell their NFTs.
However, in this case, knowing the precise value of the NFT becomes extremely important. Loan terms are negotiated based on the value of individual NFTs, and recognizing the correct collateral value allows lenders and borrowers to agree fairer and more diverse loan terms.
In order to provide its users with accurate NFT pricing data, X2Y2 has partnered with NFTBank, the leading NFT pricing provider.
For a long time, NFT pricing has been a complex issue. Not only is each NFT unique, but sales transaction data is also extremely limited. And NFTBank has sought to address this problem from the early days of NFTs.
Years of work have led to an advanced statistical algorithm based on machine learning to provide price estimates for individual NFTs with over 90% accuracy. Using information such as price floor, scarcity, and supply/ask distribution, NFTBank’s ML model calculates a unique price value for any given NFT in a collection.
Today, NFTBank offers price information for over 5,000 NFT collections and makes it available both with APIs and its own dedicated app.
With NFTBank’s rating supporting every NFT listed on X2Y2 loans, users can now make better decisions with much more information than before when setting loan terms. For example, borrowers can more efficiently decide how much of their NFT to borrow, and lenders can easily research which NFT to provide liquidity for.
X2Y2 Loans is significant in that it is the first marketplace to transition to a lending platform. With more than 3,000 DAUs, X2Y2 enjoys the trust of many buyers and sellers in the market.
With the above-market lending service, its users can make buying and lending decisions on a single platform. Just two and a half months after its launch, X2Y2 has become one of the top three NFT lending platforms approaching 8,000 ETH in total lending volume.
Meanwhile, NFTBank has already become the NFT valuation solution for key projects in the scene.
Known for its NFT price insights, NFTBank recently integrated into MetaMask’s DApp wallet, while also providing data for Chainlink, NFTfi, Pine, Stater, and Unlockd Finance. NFTBank is backed by Hashed, DCG and other partners and investors.
About NFT Bank
NFTBank is an NFT wallet management tool and valuation engine, enabling users to make informed decisions about their NFT wallet and enabling advanced DeFi use cases.
NFTBank’s ML-powered NFT valuation engine covers over 5,000 projects with high accuracy. You can find more information about NFTBank here.
Contact
Jen Kim, Product Manager at NFTBank
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