How to Lend Your Solana NFTs and Borrow SOL

Learn about Solana NFT lending and NFT x DeFi options for borrowing SOL against NFT collateral with the latest installment of DeFi Basics.

How to Lend Your Solana NFTs and Borrow SOL

Note: This is not financial advice. Kamino Finance does not endorse any tokens or platforms mentioned in this article.


  • Users can post NFT collateral to borrow assets on Solana NFT lending platforms for interest.
  • Loans must be repaid before due dates, or NFTs can be repossessed.
  • Several different platforms are lending SOL for NFTs, each with a different style of lending.

The NFT lending sector has exploded on Solana over the last year. It's a phenomenon that's hard to ignore, so this is Kamino's third article on NFT lending. You can find the previous Kamino DeFi Basics articles here:

While the last "how to" focused on lending SOL, this article will describe how users can participate in Solana NFT lending to obtain an NFT loan. There are several protocols for NFT lending pools on Solana, which means there are several different ways users can borrow against NFTs.

The following list of protocols that facilitate an NFT collateral loan is by no means exhaustive, and it is not provided as financial advice. Users should 100% DYOR before participating in Solana NFT lending or any NFT x DeFi opportunity.

The Basics: How a Solana NFT Loan Works

When you borrow against NFTs on Solana, projects usually allow you to keep the NFT in your wallet. This allows users continued DAO access or other rights bestowed by holding the NFT, but users cannot interact with the NFT while it is being used for a crypto loan. For some NFTs, this is not the case, and they will need to leave your wallet to be held by the protocol's smart contract.

Generally, borrowing and lending rely on calculating a loan-to-value (LTV), charging interest, and executing liqudations (or a repossession in the case of NFT lending).

  • Loan-to-value:  The LTV of a loan describes how much of your NFT collateral value you can borrow against. If you want to lend DeGods, you're going to be able to borrow more than if you lend y00ts, lend SMB, or lend ABC.
  • Interest: An NFT loan is not much different from any other kind of DeFi crypto loan. Lenders receive interest for providing lending NFT liquidity, so borrowers will always need to repay more than they borrowed.
  • Liquidation/Repossession: If a borrower cannot repay their NFT loan, then their NFT collateral can be repossessed by the lender. This NFT can go straight to the lender, or the protocol can raffle or auction off the repossessed NFT.

Take the Best Offer with a Sharky Lend on SharkyFi

On Sharky, lenders jockey to provide the best offers possible. As a borrower looking for an NFT loan, all you have to do is choose which NFT you'd like to provide as NFT collateral and then SharkyFi presents you with the best offer to accept or decline.

Once you connect your wallet and navigate to the Borrow page, the NFT collections held in your wallet will rise to the top of the list. Click the "Borrow" button next to a collection you want to collateralize, and a window will pop up for you to choose your NFT collateral.

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The pop-up will display the best loan, including how much SOL lending power the collection has available, the duration of the loan, and how much interest will be owed. At the bottom of the pop-up, you can see how much you will borrow, and how much you will need to repay. On SharkyFi, you will pay interest on the full term of the loan, even if you repay your NFT loan before its due date.

If you don't pay back your NFT loan in full by the due date, the lender can repossess your NFT. When your NFT collateral is repossessed, it will be transferred to the lender's wallet. On the other hand, if the floor price of your NFT crashes during the period of your loan, non-repayment is an option.

Choose Your Own LTV with FRAKT NFT Loans

On FRAKT, lenders deposit SOL into a lending pool instead of jockeying for the best offer. So, you can choose how much you would like to borrow when you lend NFTs against an NFT lending pool, instead of accepting best offers.

There are two ways to borrow SOL with NFT loans on FRAKT. First, you can have the protocol pick your NFTs for you, and all you do is enter how much SOL you need to borrow. The other option is choosing NFTs manually and then adjusting how much you want to borrow for each NFT.

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When borrowing manually, users have a few more options for tailoring their NFT loan. Depending on the quality of your NFT collateral, you can take a Solana NFT loan with several options for maturity while also choosing how much to borrow for each individual NFT.

It's possible to choose between 7 or 14-day loans, or you can take a perpetual loan with no due date. One thing to note with a perpetual loan is that you can be liquidated if your NFT collateral's floor price drops in value.

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Users can take loans in bulk from multiple kinds of NFT collections in their wallet with FRAKT. The protocol will calculate how much you can borrow and how much you will owe in fees, then you can approve a bulk loan if you're happy with the terms.

The FRAKT NFT family includes FRAKT and Pawnshop Gnomies. Possessing these NFTs can earn borrowers discounts on fees. In addition, users can earn FRAKT staking rewards by staking their FRAKT NFTs or staking $FRAKT tokens.

Borrow Multiple Assets with NFT Loans on RainFi

With RainFi, you can borrow SOL, mSOL, USDC, or BONK against the value of your NFT collateral. The user interface is reminiscent of a liquidity aggregator, like Jupiter, but it's instead used for NFT liquidity and lending.

Choose what NFT collateral you would like to post, and then choose what kind of asset you would like to borrow. Then, you will be shown top offers you can sort by LTV, interest, and duration.

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If you repay your loan before it's due date, you can save on paying interest. However, you will still need to pay a minimum of 30% interest on the NFT loan, regardless of how quickly you repay. Non-payment triggers an 8-hour grace period, and NFTs cannot be repossessed until after that time.

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One interesting feature on Rain is the ability to participate in NFT mortgages. With an NFT mortgage, users can make an upfront payment on an NFT and then pay off the rest in installments. The mortgaged NFT is automatically held as collateral until it is paid in full.

Like a TradFi mortgage, this DeFi x NFT utility makes it possible for users to access NFT collections without having 100% of the capital requirements on hand. Users will still have to pay interest on NFT mortgages until the NFT loan is completely paid off.

Solana NFT Lending Protocols Create Innovative NFT Borrowing Solutions

Borrowing SOL or other assets has never been easier than it is now with Solana NFT lending protocols. Whether you want to lend DeGods or Lend Ovols, there's a lending market waiting to provide instant NFT liquidity for your NFT collateral.

As this article has shown, there are multiple ways to facilitate an NFT loan on Solana. The space continues to evolve as NFT x DeFi protocols continue to build, and who knows where NFT lending will be in another year or two!