NFTY Notes Overview
Our most revolutionary feature, NFTY Notes, adds a new layer of financing for lenders & borrowers alike. Once a loan is issued, the lender and borrower are issued a promissory note and obligation note, respectively. These notes are non-fungible tokens, representing the borrower’s obligation to pay back the loan and the lender’s right to receive repayment. Collectively, these are known as the “NFTY Notes”.
The Notes feature is similar to interest rate swaps in traditional finance, where parties exchange the cash flows from different financial instruments.
As a borrower, you have the option to issue and trade borrower notes. These notes represent your loan obligations and can be bought, sold, or traded on the NFTY Finance platform. This feature provides additional liquidity and flexibility for borrowers, enabling you to better manage your loan portfolio.
Lenders on NFTY Finance have the option to issue and trade promissory notes. These notes represent the loans you've provided and can be bought, sold, or traded on the NFTY Finance platform. Lenders can trade their promissory note to receive an immediate return on their investment or to adjust their loan portfolio.This feature offers additional liquidity and flexibility for lenders, enabling you to actively manage and diversify your loan portfolio.