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The rektguy NFT project is mainly a collection of images of rektguy. This project is yet to release lots of information but it has been dominating the world of NFT loans in recent months. Based on its website, rektguy is “art and pfps and stuff”.
NFT lending is mainly a new feature from the integration of nonfungible tokens and DeFi.
In that context, crypto-collateralized loans in decentralized finance (DeFi), such as MakerDAO, have gained popularity in recent months With DAI’s market capitalization surpassing $5B. The upward trend is expected to continue as DeFi-adoption rates rise, similar to the dependence on decentralized solutions.
Concurrently, savvy users and communities are recognizing that the same growth is possible for NFTs.
One such community is the rektguy, a tight-knit community that is still in its early stages. This community has grown rapidly without lots of external hype or influence. While there is not a lot to go on, the rektguy NFT collection is a misspelling of “wrecked”. It started as the newest project of established artist OSF, and swiftly became popular and endorsed by celebrities like Snoop Dogg.
Notably, rekt’ denotes an NFT/crypto trader devastated by a recent price crash. In the current market conditions, it adequately describes lots of traders.
The artwork is a hooded skeleton drinking to survive in the current stressful situation. But, it turns out that the community is quite savvy, and not the kind to be most rekt.
Rektguy Was The Largest NFT Collection Launch On NFTFi
The rekt community has been breaking records ever since the project was launched. Official data indicates that Rektguy was the biggest NFT collection launch on NFTFi. The launch quickly reached more than 400 loans. It seems to have maintained a constant growth since in the last month 420 loans have been recorded.
The average loan duration is 33.3 days with a total loan volume of 41,524.059 DAI and an average loan amount of 1,258.3048 DAI.
NFTFi lets users get crypto loans using their NFTs as collateral. The available tokens include DAI, USDC, and wETH. The platform does not charge any borrower fees and there is no auto-liquidations. Once users repay their loan, they get their NFT back.
While using NFTFi, users need to first list their NFT and set desired terms of the loan. After listing, the lenders give out loan offers. The borrower can then review all available offers and accept the best one. Once a loan is accepted, the involved NFT goes into a secure escrow smart contract and the borrower gets the wETH, DAI, or USDC from the lender directly in their wallet.
Once the borrower pays their loan in time, they will automatically get their NFT back in their wallet.
Why?
Borrowers who use their rektguy NFTs as collateral can access liquidity while maintaining ownership of their NFTs if they do not default. This lets them pay off current liabilities or engage in different strategies like leveraging more assets.
On the contrary, lenders get higher-than-average loans while having these NFTs available as collateral in the case of a default. Their growing interest in lending is a testament to their confidence in the assets holding their value.
So far, it is evident that collateralized NFT loans are not trivial. They are expected to become a major industry in the digital space in the coming days. Since the rektguy community is already engaging in collateralized NFT loans, they are ahead of the curve proving their tech savviness.
The Future Of Rektguy
The rektguy project is still in the early stages, and lots of information is still concealed. But, they have received lots of support from celebrities like Snoop Dogg, and the community is hyperactive. Everything is exciting at rektguy, and the whole community supports it.
In January, they announced their new Rekt merchandise and let users participate in different competitions. Given the overwhelming success of these exercises, more merchandise is expected to be designed in the future, and competitions will feature every so often.
Projects like NFTFi that offer peer-to-peer lending will grow massively and offer considerable value to the market. Hence, with NFT collateralized loans expected to explode in the coming months, rektguy NFTs are in a leading position to dominate this space and record exponential growth in the long term.