Instant Loans

Selling your NFTs means losing the potential upside value gain and triggering a capital gains tax event. By depositing your NFTs as collateral, you are able to obtain liquidity (working capital) without selling your assets and not incurring capital gains taxes.

Loan characteristics

NFTs as collateral

In Unlockd, you borrow fungible cryptocurrency against your Non-Fungible-Tokens. Instead of using fungible tokens as collateral for loans, which is suboptimal since you lock liquid tokens to get other liquid tokens, Unlockd lets yo turn illiquid assets into productive, liquid ones.

Keep collateral utility

Unlockd loans provide True Ownership of the deposited NFT as collateral. At the moment, the first version of this feature allows for:

- Web2 Profile Pictures

The uNFT received as a receipt token contains the same metadata as the original NFT. This means you can use it as PFP on platforms such as Twitter Blue.

- Claim and minting rights

The uNFT received as a receipt token allows you to claim any reward or mint any assets associated with the original NFT, such as token airdrops.

Instant borrowing

Unlockd liquidity is pooled in Liquidity Pools, allowing Borrowers to borrow instantly from these vaults without waiting to agree with an individual lender on the loan terms and conditions.

Permissionless and secure

The Unlockd protocol is non-custodial: a set of decentralized smart contracts. The law of code governs it, and the Unlockd team at no point has any access to any of the assets deposited. The whole protocol has been fully reviewed and tested by world-class auditors to ensure both lenders' and borrowers' security, together with our own Risk Framework model to foster the health of the protocol and its loans.

True valuation

Non-Fungible-Tokens provided for NFT-backed loans should be valued independently instead of using floor prices. Our appraisal mechanism relies on several third-party tools that appraise each individual NFT fairly, according to different models, input variables, and data science techniques.


Loans do not have an expiration date. You can repay whenever you want, as long as you keep the Health Factor to ensure the protocol's solvency.


Currently, you need to take one isolated loan for each NFT you want to borrow against. In the future, you will be able to deposit multiple NFTs from different collections to borrow against in one unique, combined loan.

Fair interest and repayment

Interest is accrued linearly when a loan is outstanding. This interest is fairer than that of the Peer-To-Peer models, as it is defined by our mathematical model instead of directly by a lender.
Principal and all accrued interest can be repaid in part or totally in any number of payments the Borrower wants.
When the loan with accrued interest is completely repaid, the NFT Collateral will be released from the custody of the smart contract. The ownership of the NFT Collateral will be returned to the borrower contingent upon all the loan obligations being met.

Smart liquidations

To ensure the health of the protocol, loans whose Health Factor drops below 1 must be terminated with a liquidation event. Learn the full process and how can a Borrower save the loan from liquidation in:


When a Borrower deposits an NFT in Unlockd to borrow cryptocurrency against it, a uNFT will be minted as a Debt NFT.
It is a receipt token, a "copy" of your deposited NFT representing the right to reclaim the NFT collateral ownership upon full repayment of the loan.
uNFT are designed to provide the vault functionality with full security and the same digital self-expression. This means it has the same metadata and token ID as the original NFT you own.
This allows for the first version of True Ownership: this feature allows uNFT holders claim NFT rewards on other protocols while their NFTs are still used as collaterals or in the custody service. The uNFT can be staked on any smart contract to enjoy custodian services and third-party composability.
The uNFT protects the NFT owner from theft of collateral: no one can steal your uNFT because it’s non-transferable and non-approvable, so you won't be able to move it away from your wallet.