We’ve broken one world record and hit two milestones — and all it took was a single loan.
It’s not every day that you get a request for a loan against a grail — and Fidenza #591 is something special, as you can see above.
For those who don’t know, Fidenza is a collection of Generative Art NFTs by Tyler Hobbs. The artist describes Fidenza as his “most versatile algorithm to date”, one that, even though it focuses on curves and blocks, allows for a wide array of scales, textures, color combinations, organizations, and more. This becomes evident when you see all the unique pieces that compose the collection.
The way these traits present themselves across all the NFTs determines their rarity. That’s not to say that trait rarity determines whether one piece of art is superior to another — but rarity certainly is something that collectors and investors alike tend to keep an eye out for.
One of the qualities that make Fidenza #591 stand out is its “Small” Scale trait, present in only 1% of all Fidenzas. That trait alone puts it at the current floor price of 675 ETH (over $1M at the time of writing). Indeed, another Fidenza with this same trait was sold at Sotheby’s for around $1M just last month.
Loans against grails aren’t common — unsurprising, given the rarity of the assets themselves. That scarcity isn’t the only reason this is the case, however. It’s not uncommon for NFT loan appraisals to simply use the collection’s floor price as the baseline. As a result, borrowing against particularly valuable assets becomes pointless, especially if there’s risk involved.
Zharta’s approach to appraisals is more complex, however. Not only is rarity already a factor when appraising NFTs from several of our supported collections, but an even more thorough system is in the works. This meant that when one of our users needed a loan against his grail Fidenza, we had the necessary infrastructure ready to go.
The Record and Milestones
1- Little did we realize that, by doing so, we’d be generating the largest ETH loan ever taken against a Fidenza.
2- Not only that, but we became the leading NFT-backed loan protocol in outstanding ETH loan volume against Fidenzas.
3- Finally, this one loan also propelled us past the 500 ETH loan volume milestone.
Considering all this is happening just a few months after we launched our protocol, this is a big day for us. Our team has been working hard, and we’re overjoyed that the results — more and more users turning to our services — reflect that.
Paving the Road for Art NFT Finance
We believe that Art NFT Finance will be a big part of the future and growth of NFT lending. We’re bullish to be a part of that growth, and excited to help push its evolution forward.