Fluid Tokens allow for the borrowing and lending of assets on their platform, including ADA, other verified Cardano fungible tokens and verified non-fungible token (NFT) collections.
This allows users to earn extra liquidity in terms of ADA by providing ADA as loans on the platform and allows borrowers to put up collateral in the form of tokens and NFTs. Using Cardano tokens and NFTs as collateral opens up liquidity from assets that normally would have been illiquid.
Some may think that borrowing and lending using JPGs of money may be a terrible idea. Still, the fundamentals and mechanics behind the platform are required to build decentralised finance options for real-world assets such as commodities or other investment assets such as property.
In this lesson, you will cover topics on understanding the Fluid Tokens liquidity pools, lending and borrowing.
We will also cover understanding the on-chain loan and rental activity and look at a feature around buy now pay later for NFTs.
If you do not have a Cardano wallet, please check out our tutorials on Nami Wallet and Lace Wallet to get you started.
