How to put an NFT on Loan - Tutorial
đź‘‹ Hey there! Glad you are here & welcome to our Sqwid marketplace tutorial for Loans. These resources are made for you to learn about the Sqwid dApp and ensure a smooth process to get you ready for selling your first NFTs on the marketplace.
Briefing - What is this tutorial all about?
If you're new to the world of NFTs, you will definitely come across theoretical and also practical challenges. This tutorial will give you a brief intro in how you create a Loan Proposal using your NFTs.
Relevance - Why do I need this tutorial?
NFTs are probably the hottest tech features in 2022 and our Sqwid dApp built on Reef is an amazing place to publish your NFT collection for a very low minting cost (compared to legacy Ethereum or other layer 1 blockchains in the space).
See our blockchain comparison chart below:
See our NFT marketplace comparison chart below:
Prerequisites - What do I need to get started?
- Reef chain extension
- Reef extension account for Mainnet
- Bind EVM address here.
- An NFT on Sqwid
🎗️ If you have questions at any point feel free to reach out in the Reef Discord Dev Chat!
🚀 Getting started - we are ready to go!
Step1: Visit the Sqwid dApp on https://sqwid.app/
‌💡 What is special about this decentral application? The Sqwid dApp can be connected to the Reef blockchain. This enables great functionality as described above. Without actually connecting to the dApp, you can just look around and see some featured content. By establishing a connection, you will enjoy the full functionality of the dApp.
Step2: If you have a Reef EVM account with a balance on Mainnet, connect to the Sqwid dApp.
Click on Connect in the top right corner. You will see a dropdown list just like me. Now you can choose your Mainnet account and make sure you choose Mainnet in the tiny dropdown within the list.
⚠️ Important: EVM address needs to be claimed successfully. Here is how‌
⚠️ Attention: In case you got the polkadot.js extension installed and active, please make sure you disable it. It might interfere with signing the transaction.‌
Step3: We successfully connected our Reef Mainnet account‌
As you can see I got some REEF on Mainnet, more than enough to perform some transactions on Sqwid. You can now hit View Profile on the top right and check out your individual space.
Step4: Click on the NFT in Available Items
This is the overview page of our NFT. You can see all the respective data to it. In the bottom left corner you can see Available. These are all the options available for you to perform on your NFT.
Today we want to use this NFT as a collateral to create a loan proposal, so let us click Create Loan Proposal.
Step5: Enter the respective data for Create NFT Loan Proposal  & click Submit
Now the Sqwid marketplace is requesting some data: Loan Amount, Payback Fee, Number of copies & Duration. In addition we see information about Service Fees, which are 2.5%‌
‌💡 What is the concept behind Loans? If you need assets for private business or other projects, you can borrow an amount of money with a loan proposal backed by your NFT as collateral. When the duration of the loan expires, you must pay the repayment fee to the lender and the process is complete. If you are unable to repay the specified fee, the lender will retain the collateral.
Step6: Click Submit and sign the transaction
Step7: Check the status of your transaction‌
You can see another option now in the bottom left corner which is called Loan. You can also see the Time Period (11monts 12days 5hours 20minutes), the Payback Fee (50.000 REEF) and the Loan Amount (500.000 REEF).
Step8: Click Loans to see if your NFT is properly listed‌
There we go! The NFT is successfully listed in Loans. You can see: Returns 50.000 in approx. 12 months receiving 500.000 REEF displayed on the bottom of the preview.
Step9: Enjoy more features on the Sqwid marketplace
Congrats on your first Loan Proposal using your NFT! Now you're set up and ready to Put on Sale, Create Auction, or Create Raffle.
We are going to look at these features in the next videos. Stay tuned!
Debriefing - What are the most important takeaways from this tutorial?
đź“– You learned how to use an NFT for a Loan Proposal on the Sqwid marketplace.
âś… Understood the basics of NFTs and their features
âś… Getting comfortable with a decentral application and establishing connection to the Reef blockchain
âś… Created first Loan Proposal suing your NFT
What's next?
Check out more tutorials about the Reef ecosystem here on our blog and stay tuned for more detailed videos on sales, auctions, and raffles on the Sqwid dApp.