What if you could access loans with Splinterlands NFT as collateral?

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Splinterlands is easily the most active and played blockchain game in crypto. On top of being fun, it is home to millions of investors and players that are all vying for top spot.

One of the most interesting things about Splinterlands is the efficacy of the marketplace. To put it plainly, there's a shit ton of liquidity, so assets are easily sold.

I've used the marketplace for quite some time now, so I know exactly what I'm talking about. Selling assets is super easy and you could easily liquidate thousands of dollars worth of NFTs if you decide to.

Note that I was previously on a path that would involve selling off all my assets in the game. The plan was to sell them off now, get me some stables that I'll use to fund our plan and then buy them back later.

I was already braced for the impact of selling all my assets would give, but the real pain was not being able to play SPlinterlands as much as I wanted to. The loss of SPS revenue was also going to be a huge loss but one that I believe I've covered by selling all my DEC and buying SPS.

I recently got a really good offer that will enable me to continue playing Splinterlands. I'm still going to be selling all the assets but they'll be leased back to me.

Thanks to this offer, I'll be receiving the current market value of the remaining monsters in my deck. After that, my entire deck will be leased back to me and keep me in the game.

This arrangement comes with a very fair profit-sharing arrangement. I don't think I could ask for a better deal but this got me thinking about a feature that could be introduced to the SPlinterlands ecosystem

Collateralised NFT

Splinterlands assets are very valuable as it is. Yes, many of them have actually dropped in value in recent times, but I believe there's still a bright future for them.

As I mentioned earlier, there's also a very active marketplace for these NFT assets in Splinterlands. This makes assets good as collateral for taking loans.

I believe that if we include a fair interest rate, we could be using SPlinterlands assets as collateral for taking a loan. At the time of writing, it seems like a very sensible thing to do.

Features like that could inevitably make Splinterlands assets more valuable in the long run.

Now considering that the team behind Splinterlands are also behind Tribaldex and have experience with developing smart contracts, it is something that I believe they could achieve.

If given the opportunity to take a loan with your NFTs in a game, many people will take it. Part of the revenue raised from the loans could be reinvested into marketing or any other aspect of the project that the leaders choose.

Around Q4, we're expecting SPS validators and the proposal system to be live. This is something that we could all create as a community and run like a DAO through voting and stuff.

I don't have a mental picture of how it will work because I've never actually used a loaning platform before. However, the general idea is very fascinating.

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14 comments
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It is an interesting idea it is kind of what crypto holding services do like Celsius and such, when you can get a loan based on the crypto you hold,

still another great article written :)

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I think, you are right about the theme of loan playing game when you are out of resource. There should be a rules and regulations for taking loan and repayment system, !PIZZA.

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This would be a killer feature for sure.

I don't have a mental picture of how it will work because I've never actually used a loaning platform before. However, the general idea is very fascinating.

Deposit NFT into lending protocol and take out a loan for up to 50% of NFT value. With Splinterlands this would mean that you can't rent that card anymore until the loan is repaid since you technically transfer ownership to the protocol.

Small downside but still worth it imo.

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Yeah, its a nice concept to think about

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I actually went through some of my old posts @belemo and talking about this subject earlier in my post today. Distributed collateral is something that people need to start focusing upon. It is the basis for the new economy we are creating.

The idea is to never sell your assets but collateralize them. This allows you to maintain ownership while getting access to the value.

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7 months ago, you've always been ahead of the times

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B20. Probably, you need to understand what the pledge will be tied to. If it is pegged to the dollar, it's not very good, if it's pegged to the price of game coins, then I think. before the sale of new lands begins, this is a good deal, although, as they say, even a mop can shoot once in a hundred years).

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That idea it is something that already exists in other blockchains for example NFTFY.

I think that can be a good idea but the NFT collateralized will need to work like the collaterozation on DEFI.

If some how the NFT lowest price in the market reaches a redline the NFT it is liquidated for the protocol don't have loses in that loan.

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