Epic Chain has unveiled 0xLoans, a peer-to-peer lending platform enabling NFT holders to collateralize digital belongings for loans. This growth marks a major growth of the layer-2 blockchain’s DeFi capabilities, concentrating on the $10.2 billion NFT lending market. The platform leverages Epic Chain’s low-fee infrastructure to facilitate safe asset-backed lending with out intermediaries.
0xLoans permits collectors to unlock liquidity from high-value NFTs whereas retaining possession, addressing a essential ache level in digital asset markets. Debtors can entry capital utilizing uncommon digital collectibles as collateral, whereas lenders earn curiosity by way of custom-made mortgage phrases. This mannequin introduces new utility for NFTs past mere collectibility.
The platform integrates immediately with Epic Chain’s present ecosystem, together with its NFT market and leisure partnerships. Safety is ensured by way of non-custodial good contracts that robotically handle collateral and mortgage execution. Early testing signifies mortgage processing instances below 90 seconds with charges beneath $0.01 per transaction.
0xLoans: NFT-Backed Lending Mechanics
0xLoans operates by way of a dual-phase collateralization system the place NFTs are verified earlier than mortgage approval. Debtors first deposit belongings into escrow contracts that assess rarity and market worth utilizing Chainlink oracles. Lenders then bid on mortgage packages by way of an public sale mechanism, setting rates of interest between 5-15% APR based mostly on danger evaluation.
Mortgage-to-value ratios sometimes vary from 30-50% of the NFT’s appraised price, with durations spanning 30-180 days. Default triggers automated liquidation by way of Epic Chain’s native market, with proceeds distributed to lenders. The platform helps main NFT requirements together with ERC-721 and ERC-1155 tokens.
Distinctive to 0xLoans is its fractional collateralization characteristic, permitting a number of NFTs to safe single loans. This allows debtors with numerous collections to bundle belongings for larger credit score strains. The system additionally incorporates fame scoring that adjusts phrases based mostly on customers’ compensation historical past.
Epic Chain’s Technical Infrastructure
Constructed as an Ethereum layer-2 resolution utilizing Optimism’s OP Stack, Epic Chain achieves 4,000+ TPS with gasoline charges below $0.001. The chain makes a speciality of real-world asset tokenization, notably for leisure IP and collectibles. Its EVM compatibility permits seamless integration with present Web3 instruments like MetaMask and WalletConnect.
The community’s carbon-neutral validation course of makes use of a hybrid proof-of-stake mechanism, with EPIC token stakers incomes 8.5% APY. Safety is enhanced by way of Brink’s bodily asset safety protocols tailored for digital custody. This infrastructure permits enterprise-grade purposes like 0xLoans to function at consumer-friendly prices.
Epic Chain’s no-code toolkit permits manufacturers like Arcbound Comics and Exorians to deploy customized NFT experiences with out blockchain experience. The chain has processed over 17 million transactions since its February 2025 rebrand from Ethernity Chain, with TVL exceeding $42 million in response to L2Beat information.
Market Place and Aggressive Panorama
0xLoans enters a crowded NFT lending sector dominated by protocols like BendDAO and Arcade. Nevertheless, its integration with Epic Chain’s entertainment-focused ecosystem gives distinctive entry to branded belongings from companions together with Offender Studios and Arcbound. Early partnerships will characteristic collateralization of limited-edition film NFTs from main studios.
The platform’s launch coincides with Epic Chain’s itemizing growth, with EPIC token now traded on 12 exchanges together with Coinbase and Binance. Token utility extends to governance voting, the place holders will determine future mortgage parameters and supported collateral sorts. Staking rewards for liquidity suppliers start at 15% APY through the preliminary launch part.
Not like opponents requiring over-collateralization, 0xLoans implements dynamic LTV ratios adjusted by asset volatility. Sports activities memorabilia NFTs may safe 60% LTV whereas risky digital artwork could possibly be restricted to 35%. This risk-calibrated strategy goals to cut back liquidation occasions throughout market swings.
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The introduction of 0xLoans positions Epic Chain as a complete hub for tokenized leisure belongings, probably growing demand for EPIC tokens by way of transaction price burns. As NFT lending quantity grows 47% quarterly (Messari Q1 2025), this growth might seize market share from Ethereum-based options by leveraging layer-2 effectivity.
- Peer-to-Peer (P2P) Lending
- A decentralized lending mannequin connecting debtors immediately with lenders with out monetary intermediaries. Good contracts automate mortgage phrases and collateral administration.
- Actual-World Asset (RWA) Tokenization
- The method of changing bodily belongings like artwork or actual property into blockchain-represented digital tokens. Permits fractional possession and enhanced liquidity for historically illiquid belongings.
- Layer-2 Blockchain
- A secondary protocol constructed atop a base layer blockchain (like Ethereum) that improves scalability and reduces transaction prices. Processes transactions off-chain earlier than settling to the mainnet.
- Collateralization
- The observe of pledging belongings to safe a mortgage. If debtors default, lenders declare the collateral to recuperate funds.
- Mortgage-to-Worth (LTV) Ratio
- A danger evaluation metric evaluating mortgage quantities to collateral worth. Decrease ratios point out safer loans with better collateral protection.
This text is for informational functions solely and doesn’t represent monetary recommendation. Please conduct your individual analysis earlier than making any funding choices.
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Editor-in-Chief / Coin Push Dean is a crypto fanatic based mostly in Amsterdam, the place he follows each twist and switch on the planet of cryptocurrencies and Web3.