# One pager

The ecosystem revolves around $NIFTY - a utility token which introduces an incentive mechanism to allow NFT holders to transact in a peer-to-peer manner for various useful functions, such as fractionalisation of NFTs, or lending and borrowing of NFTs. The platform utilizes its native token as the platform currency,$NIFTY, to incentivise facilitate users to perform the following transactions:
• Borrowing (pooled)
• Borrowing (P2P)
• Fractionalization of NFTs (for liquidity)
• Voting on various features and parameters of the platform.

## Lending

Users will be able to receive loans against their NFTs as collateral. The lending mechanic depends on the history and price predictability of the collateral.
NFTs without history
This will be done on a P2P model, where NFT holders and lenders would agree on a valuation of the NFT and the platform will allow certain LTV for the deal. In the case of a default, the lender receives the NFT which was deposited as a collateral.
NFTs with history
NFTs which have trade history of at least a couple of trades and/or belong to a well established NFT family (e.g. crypto punks, crypto kitties) or artist will be eligible for an automatic fair price valuation by the platform. Those NFTs can tap into instant liquidity from the platform’s NFT lending pool.
Some of the variables which will go into determining the fair value of the NFT are:
• Previous sale value of the NFT
• Previous sale value of NFTs in a similar family
• Relative value of the NFT within it's specific set/family
• Transaction history of the addresses which have traded with this NFT

#### Collateral liquidation

In case an NFT collateral needs to be liquidated, this will be done as a three-step process.
1. 1.
The NFT will be auctioned off as a whole with the minimal value being slightly higher than the loan value.
2. 2.
If the above step fails, the NFT will be fractionalized and sold via the exponential bonding curve as described in the fractionalization step above. Since the curve pays royalties, the cost of purchasing all fractions will be significantly higher ( for example 2x) than the original NFT valuation.
3. 3.
In case all of the above fails (partially or fully), the lender will be compensated by a fraction of the NIFTY reinsurance pool.