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NFTfi, short for NFT finance, represents a burgeoning ecosystem comprising decentralised protocols and applications that extend the financial utility of NFTs beyond mere ownership. The core aim of NFTfi is to unlock additional value, liquidity, and opportunities for NFT holders and the broader market.
By utilising their NFT assets as collateral, users can access loans, enabling them to liquidate some of the value of their digital collectibles without having to sell them outright. NFTfi also explores innovative financial structures such as fractionalising NFTs and creating derivative markets, thus catering to a wider range of financial interactions within the NFT space.