Getting A Loan On The Metaverse? YouHodler Thinks So
The metaverse is immensely popular these days, and for good reason. The metaverse as a concept is a very interesting one; we will be able to create virtual avatars of ourselves, interact with other people, explore virtual worlds, and so on.
Perhaps the appeal of the metaverse is that there is little we can’t do within it. Practically everything we do in real life and more is being created on the metaverse and shows no signs of stopping.
One aspect of the metaverse that is being explored is that of loans and lending.
This comes as YouHodler, a top platform for crypto-backed loans, announced the addition of five metaverse tokens to its roster.
Five metaverse tokens, Decentraland (MANA), The SandBox (SAND), Axie Infinity (AXS), Illuvium (ILV) and Gala (GALA), have now been added to the YouHodler platform.
This means that users can trade, exchange, save and lend these tokens.
Initially, the tokens will attract a promotional 25% – 30% APR rate that will last for a month after their release.
After this, the APR will revert to the standard 3% APR. Beyond promotional rates or even making money from these metaverse tokens, YouHodler is setting the scene for metaverse loans.
The premise of the metaverse itself is that we can carry out many of the same activities, including the financial activities, that we do in the real world.
People are already getting married and buying property in the metaverse so getting a loan is not a stretch in any way.
The way metaverse loans will likely unravel is with the use of metaverse assets as collateral. In the real world, you can put down a house or a piece of land as collateral.
Since metaverse assets are valuable in themselves, they can also be used as collateral in this context.
This, essentially, unlocks a new phase of lending as a whole and will mean that loans can be taken out from all over the world with more ease and even with more accountability.
As all possibilities of the metaverse are explored, the consumers are, ultimately, the ones to benefit.
As YouHodler CEO Ilya Volkov states, “Web3 and the metaverse represent the next iteration of the internet. At YouHodler, we want to help our clients utilize their crypto in a positive way instead of just buying and holding. Hence, we feel offering new tokens such as these give our clients access to the metaverse’s potential combined with our innovative digital asset tools.”
The Wide Metaverse World
There is hardly a shortage of things to do in the digital world but the emergence of metaverse loans is a potentially industry-changing event.
The same way DeFi-backed loans opened up a new way to access financial capital on the internet, metaverse loans will do the same while connecting us to the newest and more innovative versions of the internet.
The management of YouHodler will make further announcements regarding any new token listings and metaverse developments.