While DeFi works its magic to provide a viable alternative to the bloodsucking financial behemoths, one company is looking to NFTs to revolutionize the residential mortgage market. Bacon Protocol, which sounds delectable, will use NFT smart contracts to provide an alternative lending solution.
Bacon Protocol, a high-tech startup, recently issued their first NFT mortgages. They essentially wrap a standard lien, a contract governing the right to an item of property, in an NFT and then lend against it. In addition, AI calculates customer eligibility to determine the best possible terms. The end result is a low-interest mortgage governed by an immutable contract, with loans provided by LoanSnap, the platform’s creator.
Bacon Protocol operates on its own native token $BHOME, which is backed by $USDC. Customers make loan repayments directly to the company after the NFT is established. The plan is not to replace the current mortgage industry, but rather to improve it through the use of new technology. So far, Bacon Protocol has issued seven such mortgages in four states across the United States. As a result of their creativity, interest rates range from 1.5 percent to 3.1 percent. Furthermore, despite the fact that they only launched in September, they appear to be making significant progress.