The process of getting a loan has certainly gone through some changes in the last few years. In the past, you could get a personal loan from someone you knew or go to a lending institution like a bank. Now, thanks to technology, we can take loans from the comfort of our homes with less stringent requirements.
The blockchain-based loan sector has been particularly popular, with DeFi seeing billions of dollars in investment thanks to its ability to give smart chain-backed loans using cryptocurrency. Now, it seems that the metaverse is the next step in not only digital interactions but in the lending industry as well.
This comes as YouHodler, a platform that is famous for facilitating crypto-backed fiat loans, has added five new metaverse tokens to its roster.
Tokens of the Metaverse
As per the official announcement, YouHodler users can now exchange, trade, lend, and stake Decentraland (MANA), The SandBox (SAND), Axie Infinity (AXS), Illuvium (ILV) and Gala (GALA) on the site.
As these new tokens have been added, users can enjoy promotional interest rates of 25% – 30% APR for the first month, after which the rate will return to the usual 3%. The tokens are expected to fit right in with the roster of cryptos that YouHodler already has but also help the transition to web3 and all that comes with it.
Metaverses are already conceptually connected to cryptocurrencies and thus, it makes sense that many are developing their own native tokens. Those who use metaverses are already likely open to the idea of cryptocurrency and the intertwining of the two should be seamless.
When it comes to lending, metaverses represent another stage that is more convenient for users and more innovative overall. In terms of collateral, metaverse assets can easily be used, especially when compared to ‘tangible’ assets that exist outside of the metaverse.
Platforms like YouHodler have clearly shown that loans backed by digital assets can be executed easily and as more web3 and metaverse platforms are used, this is only going to become more prominent.
After all, if people are buying virtual assets within metaverses the way they do in the real world, why can’t they take out loans while using these assets as collateral? What YouHodler is doing is setting the framework for this and once metaverse loans are fully established, the transition will be seamless for users.
As YouHodler CEO Ilya Volkov explains, “Web3 and the metaverse represent the next iteration of the internet. At YouHodler, we want to help our clients utilize their crypto in a positive way instead of just buying and holding. Hence, we feel offering new tokens such as these give our clients access to the metaverse’s potential combined with our innovative digital asset tools.”
A New Way to Loan
Since web3 and the metaverse are well on their way to dominating the digital space, those looking to give or take loans will have many more tools at their disposal. In time, the metaverse will open up a wealth of new opportunities to lend with more ease and support.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Credit: Source link
