# What is NFT lending? How does it work?

Nft lending platforms allow nft holders to make their illiquid assets liquid. You no longer have to sell your grail NFTs for liquidity! Just take out a loan for X amount of days, pay a small fee and pay it back, and get your nft back! Otherwise you lose your nft.

![](/files/zn6M9KEl8WjIp1tgCZUd)

With borrowers come lenders (this is where Zoomies comes into play). With our treasury, we will be able to mass provide liquidity to these platforms and collect fees from repaid loans.

Defaulted loans can go through a couple of things depending on market and project sentiment:

1\) Hodl and share (if they have rev share component, we hodl and share those rewards with holders)

2\) Hodl and floor/instant sale for a profit (depends on how the project is doing FP-wise

3\) Throw it in an AMM paired with SOL to get rewards (not something we typically do, but it is an option)

4\) Holder only raffle (so long as it wont hurt our treasury


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