The FODL DeFi trading platform will give away $1 million in Bored ape Ethereum NFTs as it is trying to bring closer DEFI and NFTs so let’s read further in our latest cryptocurrency news.
The FODL DeFi trading platform is trying to make a change and bring closer NFTs and DEFI. As it started exploring use cases like accepting NFTs as collateral, it realized that it can help traders get ahead starts which is why it will be giving away around $1 million worth of Bored ape Yacht Club NFTs. This will all be a part of a competition where the FODL traders can earn raffle tickets and stake at least 1000 FODL tokens during the giveaway period. The platform will also give out tickets to the top five traders on the platform each month and will reward influencers who promote the platform on social media. After the 24 BAKC NFTs were given away in a drawing, the winner of the mystery NFT will be announced.
NFTs signify ownership over digital assets and made waves in the crypto world lately with the BAYC NFT boasting celebrity collectors such as Eminem, Justin Bieber, Paris Hilton, and Steph Curry. The BAYC spawned a few official offspring collections in BAKC and MAYC form. Right now, the BAKC NFTs have a minimum value of about 8.6 ETH or $27,000, and BAYC NFTs have a floor price of $316,000. NFTs represent one of the biggest sectors in the Ethereum space and account for $25 billion in total sales volume in 2021. It has become even more popular than DEFI as the set of blockchain-based protocols which allows people to swap assets and get loans.
FODL however knows something about risks. The platform allows users to make leveraged trades and in crypto, leverage is borrowed capital just as it is in traditional finance. On FODL, it means that the traders can invest more money for potential gains by using debt in a flash loan from Compound or Aave to increase the amount they are trading with.
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Flash Loans are used to take advantage of arbitrage situations where an asset is trading at different prices on platforms which is a type of trade where a large amount of money can be borrowed and used to be repaid. The flash loans are then used to gather more leverage beyond the principal. Bigger risks bring bigger rewards.
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