NFT-Backed Loan Originator

WHAT IT DOES

NFT-Backed Loan Originator lets you originate loans by depositing your NFTs as collateral into a lending contract. Instead of selling your NFTs to access liquidity, you can use them as collateral to borrow a specified token—receiving the loan amount while retaining ownership rights (subject to the loan terms). The tool verifies your NFT ownership, checks the lending contract's requirements, and executes the loan origination in one streamlined flow. This is essential for NFT holders who need liquidity without permanently parting with their collectibles.

HOW TO USE

Connect your EVM wallet and select the network. Enter the lending contract address that supports NFT-backed loans. In the input area, list each NFT you want to use as collateral using the format: contract,tokenId. Click "Add collateral" to load them, then click "Check collateral" to verify that you own each NFT—the tool checks ownership via ownerOf() or balanceOf(). Enter the loan amount in wei and the loan duration in seconds. Click "Originate loan" to approve the lending contract for your NFTs and execute the loan origination. The tool deposits your NFTs as collateral and transfers the loan amount to your wallet.

TECHNICAL MECHANISM

The tool first verifies ownership of each NFT by calling ownerOf(tokenId) for ERC-721 tokens or balanceOf(account, tokenId) for ERC-1155 tokens. It then approves the lending contract to transfer each NFT—using setApprovalForAll(lending, true) or approve(tokenId). Finally, it calls the lending contract's originateLoan() function, which takes arrays of NFT contracts and token IDs, the loan amount, and the duration. The lending contract deposits the NFTs as collateral, evaluates the loan-to-value ratio, and transfers the loan amount (in the specified token) to the wallet. The loan accrues interest over the duration and must be repaid to reclaim the NFTs. The tool uses receipt.effectiveGasPrice for accurate gas reporting and provides progress feedback during the origination process.

WHAT IT CANNOT SEE

This tool cannot originate loans for NFTs that are not owned by the connected wallet—ownership is verified before proceeding. It relies on the lending contract supporting the specific NFT standard (ERC-721 or ERC-1155) and the valuation logic. NFTs with non-standard transfer or ownership logic are not supported. The tool cannot guarantee that the NFT will retain its value during the loan period—NFT prices are volatile and may fluctuate, potentially leading to liquidation if the collateral value drops below the required threshold.

PLEASE NOTE

Loan terms—including interest rate, loan-to-value ratio, and liquidation threshold—are enforced by the lending contract. Ensure you understand the terms before originating a loan. If the loan is not repaid by the end of the duration, the collateral may be liquidated. The lending contract must be trusted; verify its security and audit status before use. This tool is for EVM chains only and does not support non-EVM networks.