NFT Lending and Borrowing
Let’s imagine that an NFT owner is earning consistent MetFier rewards but finds themselves in urgent need of funds. Rather than sell their NFT they could take out a loan against their NFT. The staked MFI tokens would be used as collateral. MetFi DAO would lock their NFT and staked MFI tokens until the loan has been fully repaid using their future MetFier rewards to repay the loan.
Once the loan has been repaid the borrower is free to take out another loan, sell their NFT, unstake their tokens, or start receiving their MetFier rewards again which would be the automatic system default.
If the loan is not repaid within the specified timeframe the system may release the NFT to the lender. This feature requires more consideration and planning before implementation but it has the potential to add enormous value to the MetFi ecosystem.
This would create yet another revenue stream in the form of fees for the treasury.