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Projects are beginning to explore using NFTs as collateral as an alternative. Think about you bought a uncommon CryptoPunk NFT back within the day – they’ll fetch $1000s at immediately’s costs. By putting this up as collateral, you’ll be able to entry a mortgage with the same rule set. If you do not pay back the DAI, your CryptoPunk will likely be despatched to the lender as collateral. This might eventually work with something you tokenise as an NFT.