TinyFaces NFT is a collection of generative whimsical 3D characters living as NFTs on the blockchain. Each character is entirely unique and is generated by combining hundreds of attributes such as color palettes, skin tones, facial traits, outfits and accessories.

TinyFaces NFT - Uniquely generated 3D characters

Using NFTs as collateral to secure a loan, similar to how one might use a house to secure a mortgage.


Collateral NFTs


## What are Collateral NFTs?

Collateral NFTs enable owners of NFTs to leverage their digital assets to obtain liquidity without selling them. They can use their NFTs as a guarantee for loans, thereby unlocking the value of their digital assets.

## What do Collateral NFTs do?

Collateral NFTs provide a way for NFT owners to access funds without losing ownership of their digital assets. They also open up new avenues for financial services in the digital asset space, such as NFT-backed loans and lines of credit.

## What are the advantages of Collateral NFTs?

1. **Liquidity Access**: Owners can access cash without selling their NFTs.
2. **Value Retention**: Enables owners to retain their NFTs while utilizing their value.
3. **Market Expansion**: Expands the NFT market by introducing financial services.

## What are the disadvantages of Collateral NFTs?

1. **Market Volatility**: NFT values can fluctuate widely, affecting loan terms.
2. **Risk of Liquidation**: If the NFT's value drops significantly, it might be liquidated to cover the loan.
3. **Limited Accessibility**: Not all NFTs are accepted as collateral due to their varying values and demand.

## Where does the idea of Collateral NFTs come from?

The idea originates from traditional asset-backed lending, adapted to the digital and blockchain space. It reflects the growing recognition of NFTs as valuable digital assets.
