As cryptocurrency values plummeted, non-fungible tokens (NFTs) continued to post big numbers. For example, a Bored Ape Yacht Club NFT is still valued at $104,000 ETH at the low end.
Teller, a decentralized lending protocol, is determined to make the price a little less prohibitive by promoting “blue chip” NFT and allowing people to pay later for the crypto asset.
The protocol’s new Buy Now, Pay Later (BNPL) feature is similar to those developed by startups like Affirm and Karna, which are acquired by major online retailers, with a few notable differences.
The feature is currently only available for a handful of NFT projects, with funds provided by potential lenders offering liquidity through the platform. The service, dubbed “Ape Now, Pay Later,” runs on the Ethereum Polygon scaling platform.
Founder and CEO Ryan Berkun says the platform fills a gap in the market, giving potential buyers long-term access to high-quality NFT assets.
“Buying NFTs is one of the core things Web3 consumers want to do right now,” he said. “Buy now, pay later is a no-brainer.”
People can enjoy the features when a desired Bored Ape NFT is listed on OpenSea with Teller to indicate their desire to purchase NFT. Users are therefore required to make a minimum deposit (up to 50% depending on the project) before the platform attempts to connect the potential borrower with a lender. If a match is successful and the lender agrees to the terms, the deposit is combined with the rest of the lender’s funds. Eventually, the NFT will be purchased by OpenSea and placed in an escrow wallet during the redemption cycle.
If the payment is made on time, the borrower receives the NFT from the escrow wallet.
Ethereum-backed NFT projects include Bored Ape Yacht Club and Mutant Ape Yacht Club, Moonbirds, Doodles, Cool Cats, Azuki, Meebits, Adidas Originals: Into the Metaverse, RTFKT-MNLTH, and Murakami.Flowers Seed.
Berkun explains that interest rates are selected based on market liquidity and volatility. The Adidas NFT are interchangeable because they look the same and offer the same functionality for all supports. On the other hand, despite the similarity in design, Bored Ape or Doodle images consist of a unique combination of attributes.