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You make an NFT, and then you get a loan that you use to purchase the NFT, and if you don't repay the loan the owner gets to keep the NFT? It seems that you're
by lottin 4y ago
You make an NFT, and then you get a loan that you use to purchase the NFT, and if you don't repay the loan the owner gets to keep the NFT? It seems that you're financing the purchase of something you already owned. And of course the supposed financing is being done by this "pre-approved loan" which you tell us absolutely nothing about. What is that? A loan agreement? What does the agreement say and how is it enforced?
- dlubarov 4y agoI mean Person A makes an NFT and lists it for sale for $X USDC. Then Person B, who only has $Y USDC ($Y < $X), buys it using a pre-approved loan from Person C in the amount of $X - $Y. If Person B repays the loan within T days, the lien is removed, so Person B owns it free and clear. Otherwise, the NFT is transferred to Person C. The pre-approved loan would just be a message signed by Person C, granting anyone permission to transfer a certain amount out of Person C's account if (in the same transaction) they also grant Person C a lien on that particular NFT. Person C's loan funds wouldn't be in an ordinary account, but rather in a smart contract which understands these liens and loan approval messages.
- lottin 4y agoI see... yes I think such a mechanism could be used to finance the purchase of an NFT. So, I'll admit that I was wrong. You can do financing with a smart contract, although from what I gather you'd be limited to buying NFTs. Not terribly useful, but congrats on coming up with this example.