DeFi Trading Platform FODL Gives $1 Million in Bored Ape Ethereum NFTs

0

Challenge and NFT are often mentioned in the same breath. But much less often do they really go together.

The decentralized leveraged trading platform FODL is trying to change that. As he began to explore use cases such as accepting NFTs as collateral, he realized that he could probably help his merchants get a head start.

So he distributes about $1 million from NFT Bored Ape Kennel Club (BAKC) and Bored Ape Yacht Club (BAYC). It is 24 NFT BAKC and 1 BAYC NFT.

It’s all part of a competition, in which FODL traders win a raffle tickets by staking at least 1,000 FODL tokens during the distribution period, which runs from February 14 to April 30. The platform will distribute additional tickets to the top five traders on its platform each month and will also reward influencers who promote the platform on social media. Once all 24 BAKC NFTs have been distributed by raffle, the winner of the (mystery) BAYC NFT will be announced.

NFT– unique tokens that signify ownership of digital assets – have been making major waves in cryptocurrency and pop culture lately, with BAYC NFTs boasting celebrity collectors like Paris Hilton, Eminemand Steph Curry. The BAYC has spawned a few official offspring collections in the form of the BAKC and the Mutant Ape Yacht Club (MAYC).

Currently, BAKC NFTs have an estimated minimum value, or floor price, of around 8.6 Ethereum or $27,000. BAYC NFTs have a floor price of around 100 ETH ($316,000).

NFTs represent one of the largest subsectors of Ethereum, representing $25 billion of total sales volume last year. It’s become just as big as DeFi, the blockchain-based set of protocols that allows people to trade assets, get loans, and even take risks.

FODL knows something about risk. The decentralized platform allows users to do leveraged trades. In crypto and traditional finance, leverage is borrowed capital. On FODL, this means traders can invest more money for potential gains using debt – via a “flash loan” of AAV Where Compound– to increase the amount they trade with.

Flash loans are often used to take advantage of arbitrage situations, where an asset trades at different prices on different platforms; it is a type of trade in which a large amount of money can be borrowed, used and repaid in the same transaction. In this case, the flash loan is used to gather additional leverage beyond the principal.

Greater risks, but also potentially greater rewards. If things are not going a trader’s way, they may start thinking about selling their NFT.

https://decrypt.co/92343/defi-trading-platform-fodl-giving-away-1m-bored-ape-ethereum-nfts

Subscribe to decryption newsletters!

Get the best stories curated daily, weekly highlights and deep dives straight to your inbox.

Share.

Comments are closed.