While DeFi works its magic in its move to provide an alternative to the bloodsucking financial mega-corps, one company is looking to NFTs to revolutionize the residential mortgage market. The tasty sounding, Bacon Protocol, will use NFT smart contracts to offer an alternative lending solution.
Hi-tech innovators, Bacon Protocol, recently minted their first NFT mortgages. In essence, they wrap a standard lien, a contact governing the right to an item of property, in an NFT, and then lend against it. Furthermore, AI calculates customer eligibility, in order to determine the best possible terms. The result is a reduced rate mortgage, governed by an immutable contract, with loans provided by platform creator, LoanSnap.
Bacon Protocol runs its operation via its own native token $BHOME, in turn backed by $USDC. And following the creation of the NFT, customers make loan repayments directly to the company. The plan is not to replace the current mortgage industry, but to improve on it using new tech. So far, Bacon Protocol has minted its first seven such mortgages located in four states within the USA. As a result of their innovation, the interest rates range from just 1.5%-3.1%. Moreover, having only launched in September, it seems they are making great progress.
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