A 36% APY loan of USDC has just been taken out against a Pokemon Card on new NFT trading card platform

Yesterday I posted about courtyard.io—- a new platform that allows users to trade 1:1, physically backed NFT’s of PSA graded trading cards. A lot of people seemed skeptical.. turned off by this concept, raising the question; “but why would I do this when I can just buy the card physically?!”

Because, among other things, it makes the cards more liquid , allowing users to trade actual cards without shipping back and forth, using NFT and web3 technology to secure real trading volume, thus incentivizing profits for users. (If you check out the r/pokeinvesting sub, you’ll see the large amount of investors with cards damaged during the shipment process, scammers, counterfeit cards, etc .) and NOW, we see people taking out loans against cards..

Teller.org, a lending and borrowing program against NFTs and ERC20s, was used in this instance to take a loan out against a PSA-9 Venasaur, valued at $300. The loan is $53. That’s a 17.7% loan-to-value ratio (LTV). This enhances liquidity for the borrower.

This borrower now has $53 to use at 36% APY, to be paid back in 30 days. That adds up to $1.60% interest. Plus, the low gas costs on Polygon makes this a low-value deal.

The Teller V2 contract has been used to establish this loan arrangement. It's used USDC on Polygon to use the ERC-721 (Pokemon Card NFT) as collateral.

Just thought this was interesting. There are some smart contract risks at the moment.. perform your due diligence.. but everything seems to be pretty safe at this point. We will see.

This is just the beginning of one of the MANY use cases of NFTs. The JPEG PFP trend has died (thank god)

Onwards!