Ethereum NFT Loans: How to Borrow and Lend ETH

TL;DR

• Liquidium.WTF is live on Ethereum, with 50 collections at launch. Borrow ETH against a supported NFT or lend to other holders. Principal and repayment settle in WETH; native ETH pays gas.
• Collection rates are 50%, 100% or 200% APY before the interest fee. Available terms range from 14 to 90 days, depending on the collection.
• No activation fee. Lenders keep 85% of repaid interest; the protocol fee is 15% of that interest. Network gas is separate.
• Loans have a repayment deadline rather than price-based liquidation. Repay on time to recover your NFT; an unpaid loan can leave the lender with your collateral.

Ethereum NFT lending is now open on Liquidium.WTF. You can use a supported NFT to access ETH without selling it upfront, or put your ETH into loans backed by collections you know.

The same peer-to-peer approach used on Robinhood Chain and Bitcoin now gives Ethereum NFT holders another way to access liquidity, with its own collection rates, durations and fees.

Ethereum joins Bitcoin and Robinhood Chain in one app, with a refreshed design across all three networks.

How do Ethereum NFT loans work?

Lenders list offers against supported NFT collections. A borrower chooses an available offer, commits an eligible NFT to the loan contract and receives the funds once the transaction completes.

The rate and term are agreed before the loan starts. Your NFT stays locked as collateral until repayment. A collection floor-price drop does not liquidate an active loan, but it can make the collateral worth less than the debt.

For borrowers, the tradeoff is access to ETH while giving up access to the NFT during the loan. For lenders, the return depends on repayment; a default means assessing and potentially selling the NFT instead.

Before you start: wallet, network and loan currency

Open the Ethereum app and connect a compatible Ethereum wallet. To borrow, use the wallet holding your eligible NFT. To lend, use the wallet holding your funds.

Keep ETH on Ethereum for gas, including collateral approvals, borrowing and repayment. ETH held on Robinhood Chain or another network cannot pay Ethereum mainnet gas.

The app labels the market ETH, but principal and repayment use wrapped ETH (WETH). Wrap ETH when prompted and review any WETH or collateral approvals before signing. The Ethereum overview explains settlement and network requirements. Robinhood Chain is a separate market with its own settings.

How much can you borrow against your NFT?

Your borrowing amount comes from the offers lenders make for your collection. The protocol sets no minimum principal. Lenders choose their offer amount, while the interface caps principal at 98% of the collection floor. That cap is a limit, not a promise that a lender will offer that much.

Loan-to-value, or LTV, compares the principal with the collateral value used in the quote. For example, a 1 WETH loan against a 2 ETH collection floor has a 50% LTV.

A floor price is a listed asking price, not a guaranteed sale price for your NFT. Use it to compare offers, then check the actual principal and repayment amount. No minimum does not mean unlimited borrowing or guaranteed funding.

How to borrow ETH against Ethereum NFTs

1. Find your collection. Open Borrow in the Ethereum market. Select Offers next to a collection and use the term filters to compare available offers.
2. Choose your NFT. Select the eligible NFT you want to use as collateral.
3. Review the loan. Open Details to check the principal, fixed interest, duration, LTV, full repayment amount and exact deadline. Borrow's Interest field shows the percentage for that loan term, rather than an annual rate. Account for gas separately.
4. Approve and confirm. Follow the collateral-approval and transaction prompts, then check the active loan in Portfolio.

Have a repayment source before you sign. A plan to sell another NFT later depends on finding a buyer at a workable price before the deadline.

How NFT lending on Ethereum works

1. Pick a collection. Open Lend and choose collateral you understand and would be prepared to receive on default.
2. Set the amount and term. Enter your WETH principal and choose an available duration. Check Max APY, LTV and your Max % setting.
3. Check your return. Open Details next to Earn. Earn is your interest after the 15% protocol share; Total return includes your principal. Gas is separate.
4. Publish the offer. Wrap ETH if your WETH balance is short, complete any WETH approval, then sign. Keep enough WETH in your wallet: you fund the principal when a borrower starts a loan from the offer.

An unfilled offer earns no interest. Offer expiry is the window for accepting your offer; the loan term starts when a borrower accepts it. Use the clock control next to Make offer to set expiry in minutes or days. Manage or cancel unused offers in Portfolio.

Ethereum NFT loan fees: a worked example

There is no borrower activation fee at launch. After a borrower repays, the lender receives their principal plus 85% of the agreed interest. The protocol receives the remaining 15% of interest, not 15% of principal.

Consider a 1 WETH loan for 30 days at 50% APY. The Ethereum fee guide calculates the fixed term interest as principal × [(1 + APY)^(days ÷ 365) − 1], with APY entered as a decimal. Gas is excluded:

• Borrower receives: 1 WETH.
• Fixed interest: approximately 0.033887 WETH.
• Borrower repays: approximately 1.033887 WETH.
• Protocol share of interest: approximately 0.005083 WETH.
• Lender's interest after the fee: approximately 0.028804 WETH.
• Lender receives on repayment: approximately 1.028804 WETH.

The lender earns about 2.8804% over this 30-day loan before gas, if it is repaid. APY is the input used to calculate fixed interest for the term; it does not guarantee a year of lending returns. Offers may go unfilled, borrowers may default and network costs reduce earnings. Check the app's final quote before signing.

Repayment, default and lender risk

Select Ethereum in Portfolio and connect the wallet used for the loan. Keep enough WETH for the full repayment and native ETH for gas. Wrap ETH or approve WETH if prompted, then confirm Repay with time for the transaction to confirm before the deadline.

The Ethereum borrowing docs specify that early repayment still requires the full fixed interest. If a loan expires unpaid, the lender can claim the NFT from Portfolio. After repayment or a claim confirms, check the receiving wallet and review the settled loan in History.

Lenders should size each offer for that outcome. A collection's floor can fall, and a particular NFT may take time to sell or sell for less than the loan principal. No repaid-interest fee is charged on a defaulted loan, but receiving collateral does not guarantee recovering the money lent.

Which Ethereum NFT collections are supported?

50 Ethereum NFT collections are supported at launch. The Ethereum collection docs describe three APY tiers. Examples include:

• 50% APY: CryptoPunks, Bored Ape Yacht Club and Pudgy Penguins.
• 100% APY: collections such as Mutant Ape Yacht Club, Milady Maker, Azuki and Doodles.
• 200% APY: collections such as Terraforms, Identity MD and VeeFriends.

CryptoPunks, BAYC and Pudgy Penguins offer 30-, 60- and 90-day terms. Other supported collections offer 14-, 30- or 45-day terms. Check each collection's current options and available offers before signing.

Check the Ethereum collection list for eligibility and available offers. A supported collection does not guarantee an offer is waiting for every NFT. If your favorite is missing, suggest it to Liquidium.WTF via Discord or X for consideration.

Borrow against your NFT or make a lending offer

Borrowers: Find an offer for your Ethereum NFT. Compare the ETH you receive with the full repayment amount and deadline.

Lenders: Open Ethereum lending. Choose your collection and principal, then review your earnings after fees.

FAQs

Can I borrow ETH without selling my NFT?

Yes, if the NFT is eligible and a lender offer is available. Your NFT becomes loan collateral. Repaying on time returns it; default can cost you the NFT.

Can I repay early and pay less interest?

You can repay early, but the full fixed interest agreed at the start remains due. Review the quoted repayment amount before borrowing.

Do I need an NFT to lend ETH?

No. You provide the loan funds and the borrower supplies the NFT. You should understand the collateral because you may receive it after default.

Is the listed APY what lenders keep?

The listed APY is before the protocol's share of interest. Lenders keep 85% of the fixed interest after repayment, before gas. Use Earn in the offer's Details to check your interest after the fee, and Total return to see principal plus that interest.