Through FODL, the Bored Ape Yacht Club and the Bored Ape Kennel Club are giving away a total of 25 NFTs.
Despite, NFTs and DeFi always being referenced together. They don’t always go together, though.
FODL, a decentralized leverage trading platform, is attempting to rectify this situation. It realized it might help its traders by accepting NFTs as collateral.
BAKC as well as BAYC, are giving away non-fungible tokens worth approximately $1 million. This set includes 24 BAKC non-fungible tokens and one BAYC non-fungible token.
Between February 14 and April 30, investors who stake at least 1,000 FODL tokens can win raffle tickets. For the top five traders and influencers that promote the platform on social media, additional tickets will be granted. A BAKC NFT recipient will be informed by BAYC once all 24 BAKC NFTS have been assigned.
Celebrity collectors including Eminem, Paris Hilton, and Steph Curry have flocked to the BAYC NFTs. BAYC NFTS are one-of-a-kind tokens that symbolize ownership of digital assets. The BAYC has two legitimate offspring collections: the Bored Ape Kennel Club (BAKC) and the Mutant Ape Yacht Club (MAYC).
Tokens valued around 8.6 ETH are BAKC, while BAYC non-fungible tokens are worth around 100 ETH. Both NFTs are at around $27,000 and $316,000, respectively.
NFTs were among Ethereum’s most important subsectors last year, accounting for up to $25 billion in total sales volume. It is now on par with DeFi. DeFi is a set of blockchain-based systems that enable users to trade assets, borrow money, and even take on risks.
FODL understands the concept of risk. Users can make leveraged trades on the decentralized platform. Leverage is the borrowed capital in both crypto and traditional finance. On FODL, traders can grow their trading capital by taking out a “flash loan” from AAVE or Compound.
Flash loans are a form of trading practice. It allows the borrowing, spending, and repaying of a large sum of money in one transaction. FODL utilizes the flash loan to produce extra leverage in addition to the principal in this case.
The risks are more significant, but the rewards may be as well. If the trader’s plans do not pan out, he or she may contemplate selling their NFT.