KEY POINTS
Salvor, a non-fungible token (NFT) and memecoin lending protocol built on Avalanche, has received a grant of $1 million worth of $AVAX through the Avalanche Rush Program.
This program, operational since 2021, functions as a liquidity mining initiative aimed at bolstering Avalanche’s decentralized finance (DeFi) ecosystem.
Originally established in 2022 as an NFT marketplace, Salvor has since evolved into a platform focused on NFT lending.
Salvor facilitates users in using their NFTs and memecoins as collateral to secure loans denominated in AVAX, offering borrowers immediate liquidity and providing lenders with opportunities for passive income.
In the event of borrower default, Salvor implements a Dutch auction mechanism, gradually reducing the price until a buyer is found, allowing the lender to recover the loaned amount and potentially generate profits.
Currently, Salvor supports over 800 NFT collections and offers various features such as executing multiple buy, sell, and transfer orders across collections in a single transaction.
Aytunc Yildizli, CEO of the Avalanche Foundation, noted, “Salvor not only potentially enhances liquidity but also widens the scope for NFT owners to engage in the financial ecosystem without selling their assets.”
According to a recent report by CoinGeko, citing Dune Analytics data on the lending volume of top NFT lending platforms, the first quarter of 2024 witnessed an impressive surge, reaching $2.13 billion, a 43.6% increase from the previous quarter.
Among these platforms, Blend, launched by the Blur NFT marketplace, dominates with a staggering 92.91% market share and a monthly lending volume of $562.33 million in March 2024.
The rapid growth of NFT lending is underscored by notable transactions within the market. For instance, in February 2024, crypto investor GMoney secured a $1 million loan using a CryptoPunk as collateral on the Gondi NFT lending platform, marking the largest on-chain NFT loan to date.
