Yawww allows lenders to determine their risk/reward ratio creating a win-win scenario for borrowers and lenders alike.
Higher Loan-to-Value for Borrowers
The Solana Non-Fungible Tokens (NFTs) escrow Yawww is launching peer-to-peer loans on April 11.
According to Yawww’s Twitter thread from April 8, the new product will be a decentralized way for users to lend and borrow $SOL using their NFTs as collateral. Borrowers can specify the loan amount, interest rate, and duration, and lenders can then browse the listings to find a request they want to fulfill and negotiate the loan terms on Discord.
“Why do we think a P2P product for NFT Collaterization makes more sense than any valuation algorithm? This is because we believe beauty is often in the eye of the beholder. The value of any NFT can be affected by traits, rarity score and an individual’s taste,” shared the team on Twitter.
According to a December 2021 publication from Grayscale, Web2 is a $4.6T market, and Solana is starting to take market share, positioning itself as a leading Web3 challenger. NFTs only comprise around 1% of Solana´s economy, and there´s still much room to grow as many new use cases emerge (gaming, event tickets, copyrights & royalties, memberships, etc.).
Ethereum, on the other hand, has a more mature NFT ecosystem and could serve as an indicator of how things could evolve on Solana. The total loan volume on some of its NFT lending sites is about $95M per year. If Solana keeps expanding along with its NFT market, tools like Yawww that surround these digital assets should grow in tune with the ecosystem.
What is Yawww?
Yawww aims to build the hub for everything pertaining to Solana NFTs. It allows users to trade, buy, sell and loan NFTs, all in one place.
Many exchanges allow the listing of NFTs for sale, purchasing, and bidding. However, as the community was craving something more than just an “eBay” for NFTs –– they wanted the ability to negotiate, create deals, and trade with peers, many trades were conducted over-the-counter. Unfortunately, this led to scams, fraud, and fake escrow services.
As a result, Yawww built the ecosystem’s first automated escrow service for peer-to-peer NFT trading by utilizing smart contracts on Solana.
Where to find Yawww?
Source : web3wire.news
Founded in 2020, solana News is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (solana). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. solana News aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the solana DeFi space.
solana NEWS is a private news network. All posts posted by this user belong 100% to solana.news All rights are reserved to Solana NEWS.