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Borrow ETH with Your NFTs

Tutorial of borrowing ETH via NFT loan

You can use your NFTs as collateral to borrow ETH from other lenders, which is called NFT Loan on X2Y2.

NFT that can be used as collaterals needs to meet the following requirements:

  • The NFT collection is in the whitelist.
  • The NFT is not marked as stolen or removed on X2Y2 or other markets(e.g. OpenSea).
  • The NFT has received valid loan offers, (which means some lenders want to lend you ETH).

The collection whitelist is set up to reduce the risk of highly volatile collections. We will gradually add more collections to the list. You can contact us to add your collections to the whitelist.

By accepting a loan offer, you establish an NFT Loan that:

  • Sends an amount of ETH to your wallet.
  • Requires you to repay an amount of ETH (the amount you borrowed + interest) before the due time.
  • Locks your NFT in the contract as collateral, until you pay off the loan.
  • Grants the lender to obtain the NFT collateral if you fail to pay off the loan before the due time.

What is a Loan Offer

The loan offer is a way for lenders to show you their willingness to lend you ETH based on the value of your NFT.

Based on the target types, there are two types of loan offers:

  • Collection offers that apply to all items of one collection. Anyone that possesses one item of the collection could accept the collection offer.
  • Item offers that apply to a single item. Only the owner of the item could accept the offer.

A typical offer includes the following terms:

  • Loan value. The amount of ETH that the lender is willing to lend.
  • Repayment value. The amount of ETH that the borrower has to repay, consisting the amount borrowed and interest.
  • Duration. The amount of time the borrower could take to pay off the loan.
  • The Annual Percentage Rate (APR). The annual cost of a loan to a borrower, including interest and fees, expressed as a percentage. It's used to measure how much interest will accrue on the loan value.
  • Expire time. The offer invalidates after its expiration time.

How to Borrow ETH

To start borrowing ETH, first, you need to locate one of your NFTs that has received loan offers. You can check the Loans section on the NFT's detail page.

Offers list with borrow button

If you have NFTs of the whitelisted collections, you could open the NFT's detail page to see the loan offers.

Otherwise, you need to wait until other collections you own get added to the whitelist, or buy an NFT from the collections above.

Accept an Offer

You may find multiple offers available but with different loan values, APR, and duration. Consider seriously and pick the one that suits you best.

Once you decided which offer to accept, click the Borrow button on its right side, confirm the terms once again and click the Borrow button at the bottom to accept the offer and establish the loan.

Borrow confirmation

When the transaction succeeds, your NFT will be locked in the contract and ETH will be deposited into your wallet.

Repay Your Loan

You can browse your ongoing loans under the Loans tab on your Profile page.

My loan list

Click the Repay button on the right side to pay off the loan and get your NFT back.

You can pay off the loan at any time before its due time, however the repayment value will stay the same.


If you do not repay the loan befure the due time, the loan will become Defaulted after the due time. You would never be able to repay the loan and get your NFT back via X2Y2, and the lender will be able to retrieve the NFT to his wallet.

Airdrop Notice

When your NFT is locked in the loan contract as collateral, if the NFT project airdrops any token, it will be sent to the loan contract and there are no means to transfer it out of the contract at the moment. This is a contract limitation, and we will improve it in the future.