TribeOne - Revolutionizing the DeFi space with low-interest and flexible lending solutions

Over the course of the last few years, the popularity of NFTs rapidly rose. While many still consider them collectibles, there is no limit to the possible utilities of NFTs. As we continue to explore this new, completely-digital asset class, we should pay attention to the practical use they can provide: a highly secured, comprehensive approach to ownership and digital transactions that can change the world as we know it.

Going back to what DeFi does at the moment from what it can potentially do in the future, simplifying and improving lending processes is among the biggest advantages DeFi has to offer. In traditional finance, one must have a good credit score and satisfy plenty of requirements set by credit providers in order to receive a loan. In this day and age where investment opportunities and financial markets move at a rapid pace, strict requirements of TradFi lending can be crippling.

TribeOne being one of them, DeFi lending service providers offer a much easier and more transparent experience. Any user can quickly borrow money with their cryptocurrency or crypto assets as a form of collateral. Just one of the wonders of decentralized finance!

On the other hand, as DeFi grows and evolves, its problems also become more apparent. Scalability challenges and increasing gas fees are limiting the mass adoption of DeFi.

A platform founded based on the goal of making NFT space thrive, TribeOne took important steps towards achieving its goal. Through our ever-growing partnership ecosystem, our users can enjoy our NFT financing solutions and the various other features our dApp will offer in the future without paying any gas fees.

Identifying the problem: NFT space needs more liquidity

Illiquidity is the main issue of the current NFT space. Several DeFi projects have addressed the growing need for liquidity and shifted their focus to offering lending solutions. While acknowledging the need deserves a round of applause, it is not enough.

Most NFT-lending platforms fail to recognize the necessity of tailored loaning options, contradicting the whole point of lending funds for NFT purchases; to make the acquisition of NFTs simpler, faster, and more accessible. Just as it is with traditional lending services, users are presented with an illusion of choice rather than actual, personalized repayment plans.

TribeOne has one solution- among many others that is particularly important — self-liquidation of financed NFTs.

In a nutshell, self-liquidation allows users to apply for a loan for their favourite NFT and gain custodian status. TribeOne secures the NFT on the user’s behalf and holds it for the user until they complete their repayment. This is where it gets interesting. Users can sell or lease out the NFT anytime they want, even before paying their installments! This opens up so many new strategies to maximize profits.

Solving the problem: Low-interest rates & customized lending solutions

Providing low-interest rates and hassle-free lending solutions are also TribeOne’s specialities. In fact, TribeOne is unrivalled in that area.

To put it into perspective, let’s compare TribeOne’s lending solutions with traditional lending.

For starters, TribeOne offers zero collateral loans. Users can opt for a loan for purchasing an NFT without putting down collateral and get the loan by making a downpayment of a minimum of 25%.

In traditional finance, the borrower can use a form of collateral to secure a loan. The collateral can be a car or house that is bought using the loan. Without collateral, the borrower is often given a higher rate of interest, and limited funds can be borrowed. Low credit scores also take their toll on one’s chance to get a sizable loan.

For a simple $50,000 non-collateral loan, let’s assume that the interest amount to pay is 36% of the principal amount:

50,000 + 0.36(50,000) = $68,000

Interest Owed = $18,000

TribeOne’s interest rates are between 1% and 10%, depending on loan duration and downpayment amount.

To make it simple, let’s assume a user is looking for a loan to obtain an NFT worth 2.5 ETH.

To begin with, users set the rules for their repayments at TribeOne, not the credit provider. Say the user can make a downpayment of 0.625 ETH, which is 25% of the value of that particular NFT.

When the loan duration is set to 6 months, the interest rate is only 6%.
Let’s do the math!

Custom terms:

2.5 ETH loan amount
25% downpayment = 0.625 ETH
0 collateral = 0
6% interest = 0.1125 ETH
6 months loan duration = 0.33125 ETH monthly installment

No need for a perfect credit score or highly valuable collateral. To understand how the interest rate is determined, check out this video.

Now combine this amazing interest rate with the above-mentioned self-liquidation feature. Taking advantage of that feature, users can easily pay their remaining installments in an instant when their NFT hits the target price, and they can walk away with 2x, 3x, or even 5x profits.

Zero collateral loans and such low-interest rates are unmatched in the DeFi space as well. The key is that we provide the flexibility others fail to deliver. Because we believe good investors deserve getting their dues no matter their credit score or capital they have.

This is possible on TribeOne’s instant NFT-lending dApp that provides all-in-one financing solutions on verified NFTs from OpenSea.
Through TribeOne dApp, users can enjoy:

Don’t know how to use our dApp? Here is a guide to help you start benefiting from TribeOne’s unique features.

About TribeOne

TribeOne is the world’s first-ever NFT lending platform that offers a seamless experience; to the users through its innovative consumer-centric products. The platform will break barriers in the traditional financial ecosystem and revolutionize the DeFi sphere as a whole. Providing the community with a platform to lend, borrow and invest in NFTs. Therefore, offering an unconventional experience for all.

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