In turn, NFTs become an excellent add-on for DeFi tools that expands the variety of use cases.
One of the earliest ideas for combining NFTs and DeFi was to use new unique tokens for DeFi lending. In this case, NFTs can act as collateral. For example, nftfi allows a borrower to apply for a loan using the NFT as collateral.
If the lender considers the NFT to be valuable, the loan is issued. NFTs are often valued based on their value in secondary markets. The fulfillment of the condition is ensured, of course, by smart contracts.
This case demonstrates the potential of the DeFi and NFT combination outside of gaming and other entertainment industries. NFT is also an opportunity to incorporate unique digital and real-world assets into the digital economy and get profit.