While the DeFi industry on chains like Solana and Ethereum may look depressing, Cardano developers are more than happy to take their part in the cleansed niche and present their own solutions. One of those projects offers loans backed by Cardano NFTs.
Users are already using the platform's full potential by loaning ADA to anyone who is willing to use their NFT assets as collateral via smart contracts. Such NFT pieces as Clay Nation can be used for backing any kind of loan.
NFT-backed loans are not a unique feature presented on Cardano only. Previously, numerous platforms on Ethereum and Solana blockchain were offering a similar service. Back in the era of the booming NFT market, using non-fungibles as loan collateral was one of the most proficient ways of getting a liquidity boost that allowed collectors to unlock the value of their investment without selling it.
Cardano ecosystem is blossoming
A variety of new releases, constant updates and stable performance are the main factors that attract hundreds of developers from blockchains like Ethereum and Solana to join Cardano and start developing new applications that should push the value of the network up.
One of the most recent updates of the network—Vasil hard fork—will be the most disruptive update of the network since implementing Plutus Scripts. U.Today previously covered the significance of the new update in our new guide.
Vasil will bring numerous CIP (Cardano Improvement Proposals) to life that will enhance the usability of the netowrk and improve its performance. Additionally, developers will be able to work with new functions that allow them to build more sophisticated solutions for any kind of user.