Peer-to-Peer Lending
In peer-to-peer lending, a lender and borrower agree directly on loan terms, rather than drawing from a pool. Because Fabrica property tokens are standard ERC-1155 NFTs, they can be used as collateral in any peer-to-peer lending protocol that supports NFTs, with no Fabrica-specific integration required. A token holder simply takes a loan on whichever venue is active and competitive.
Fabrica's first peer-to-peer integration was a direct, in-app one with NFTfi, where the earliest loans against property tokens were originated and ran their full course on-chain (repaid, or liquidated on default). That direct integration has since been removed and NFTfi has shut down, but the point it proved still holds: the tokens are standard collateral that outlives any single venue. A good peer-to-peer venue to use today is Gondi. For instant, in-app borrowing, Fabrica also offers a pool-based path.
The sections below describe how the former NFTfi integration worked, retained as a worked example of the peer-to-peer model. NFTfi has shut down and there are no outstanding NFTfi loans against Fabrica properties; another peer-to-peer venue (such as Gondi) would differ in its specifics.
How It Worked
For Borrowers
- List Your Property: A Fabrica property token was automatically available as collateral on NFTfi
- Receive Offers: Lenders reviewed the property and submitted loan offers with their terms
- Accept an Offer: The borrower chose the offer that best fit their needs
- Receive Funds: Loan funds (typically stablecoins) were transferred to the borrower's account
- Repay: The borrower paid back principal plus interest by the due date to reclaim the token
During the loan, the property token was held in NFTfi's smart contract. The borrower retained beneficial ownership and full rights to use the property.
For Lenders
- Browse Properties: Lenders reviewed Fabrica properties on fabrica.land
- Conduct Due Diligence: They evaluated the property using metadata, confidence scores, and third-party valuations
- Make an Offer: They specified their terms, loan amount, interest rate, and duration
- Await Acceptance: The property owner reviewed and accepted the offer
- Earn Interest: They received repayment with interest, or claimed the property token on default
Loan Terms
NFTfi loans were fully customizable. Lenders specified:
| Term | Description |
|---|---|
| Principal | The loan amount offered |
| Interest Rate | Annual percentage rate (APR) |
| Duration | Loan period (typically 7-90 days) |
| Currency | Usually USDC or ETH |
Borrowers could receive multiple offers and choose the one that best suited their needs.
Borrower Eligibility Options
Lenders could target their offers to specific borrowers:
- Current Owner Only: Offer available only to the current property owner
- Any Owner: Offer transfers with the property if sold during the offer period
- Specific Future Owner: Offer reserved for a known buyer (useful for financing purchases)
Buy Now, Pay Later
NFTfi enabled property purchases with built-in financing:
- A lender created an offer for a property listed for sale
- A buyer could use that offer to finance their purchase
- The buyer paid only the down payment at purchase
- The loan initiated automatically with the sale
This streamlined property acquisition for buyers who wanted to preserve capital.
What Happened on Default
If a borrower failed to repay by the loan end date:
- Default notice: The borrower received a formal UCC notice (Notice of Default) proposing that the lender accept the collateral
- 20-day objection window: The borrower could repay, object, or request an accounting
- Lender claims token: If no action was taken, the lender claimed the property token through NFTfi
- Ownership transfers: The lender became the new beneficial owner of the property
The lender then has full ownership rights and can:
- Sell the property on Fabrica or other marketplaces
- Hold the property as an investment
- Develop or utilize the land
- Off-ramp to traditional title ownership
See Loan Defaults & Liquidation for the complete default process, borrower rights, and UCC compliance details.
Getting Started
For instant borrowing inside the Fabrica app, use the pool-based path: browse your properties on fabrica.land, select a property, and click "Get Instant Loan" to see available terms (see Pool-Based Lending).
For a peer-to-peer loan, use any lending protocol that accepts ERC-1155 NFT collateral and follow that venue's process to make or accept an offer against your property token. Gondi is a good option today (the former NFTfi integration, whose mechanics are described above, has shut down). Because property tokens are standard ERC-1155 tokens, they remain usable as collateral wherever such lending is offered.