NFT Mortgage: Explained

Buy now pay later: NFT Mortgages

What is a Mortgage?

A mortgage is an innovation of JewelSwap, allowing you to buy your favorite NFTs, without having the total value of the required price.

How does it work?

NFT Mortgages are actually quite similar to NFT Loans. Let's look into how it works.

Let's say you want to purchase an NFT that costs 6 EGLD on the open market. But you only have 3 EGLD available right now.

With NFT Mortgages, you can borrow the 3 EGLD shortfall from the NFT EGLD-lending pool on JewelSwap and buy the NFT now. The user selects a payment plan based on the Interest Plans and can open a Mortgage on the NFT.

Now you can see, why this is similar to the NFT Loans: The user now has a position of 3 EGLD debt (50% of the NFT's value) and the NFT is held as collateral on the platform. This is the same situation as if the user would have opened a 3 EGLD borrow against his NFT.

In case the Health Factor would worsen a lot or the user would miss the interest payments, the Mortgage would get Liquidated.

Only NFTs from verified collections can be used for NFT Loans and NFT Mortgage. The currently available collections can be found on the NFT Borrow section and the NFT Mortgage section respectively.

Start buying NFTs now and paying later

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