DeFi and NFTs are two of the biggest applications of blockchain technology. The introduction of NFTs into DeFi can help in a myriad of ways. For one thing, NFTs can be used as collateral for crypto loans, completely eliminating third parties. Assets bought on NFT marketplaces for digital collectibles can be used as collateral, much like how traditional art is used sometimes. Holders of certain NFTs may also gain exclusive access to DeFi platforms and may earn staking rewards. Governance tokens also give the NFT holder voting rights on these DeFi platforms. All this makes the marriage of NFTs and DeFi very fruitful.
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