Overview
Pine Protocol provides NFT-backed lending across multiple chains, including Ethereum and other EVM networks. The protocol uses a pool-based model where lenders supply capital to collection-specific pools, and NFT holders borrow against their assets. Pine supports a broader range of collections than BendDAO (which focuses on blue-chips only), including mid-tier collections. However, wider collection support means higher risk per pool, and the NFT market downturn has made mid-tier NFTs particularly illiquid.
Smart Contracts
Pine's contracts manage collection-specific lending pools, NFT collateral custody, interest accrual, and liquidation mechanics. The pool-per-collection model isolates risk but fragments liquidity. The contracts follow standard lending patterns adapted for NFT collateral, with floor price oracle integration for liquidation triggers.
Security
Limited public audit information. The multi-chain deployment adds complexity and potential attack vectors. NFT price oracles are the critical security dependency — mid-tier collections have less reliable floor price data than blue-chips, increasing oracle manipulation risk.
Liquidity
Low liquidity across lending pools. Mid-tier NFT collections have particularly thin lending supply, as lenders are reluctant to provide capital against volatile, illiquid collateral. Blue-chip collection pools are better supplied but still modest compared to BendDAO.
Adoption
Limited adoption, smaller than BendDAO and NFTfi. The broader collection support attracts some users with non-blue-chip NFTs but the fragmented pool model means most pools are underutilized. The NFT market downturn has reduced borrowing demand across all collections.
Tokenomics
Token utility includes governance and potential fee sharing. With minimal lending volume, fee generation is negligible. The token's value depends on NFT lending market recovery, which requires broader NFT market recovery first.
Risk Factors
- NFT market decline reduces demand across all collection pools
- Mid-tier NFT collateral is highly illiquid and difficult to price accurately
- Floor price oracles for non-blue-chip collections are less reliable
- Competition from BendDAO, NFTfi, and Blur Lending with larger pools
Conclusion
Pine Protocol expands NFT lending beyond blue-chips, which is theoretically valuable but practically challenged by illiquidity and pricing risk in mid-tier collections. The 2.1 score reflects reasonable design limited by the NFT market environment and competitive pressure from larger protocols.