A lending market that uses Aave credit delegation to allow loans against ERC-721 tokens.
the NFLend protocol creates a market for borrowers to stake their NFT assets as collateral by creating borrow requests. Lenders can then browse borrow requests and choose to fulfill them by delegating Aave credit.
The lender then receives income upon the borrower's repayments (which must be done to avoid liquidation.) Should the borrower's debt expire or grow past the liquidation threshold, the lender can opt to liquidate the position and receive the NFT.
This project was essentially built using Figma for design and a standard hardhat + ethers development environment for Solidity.
What's interesting is that this setup, unlike regular peer to peer lending markets, actually allows the lender to maintain exposure to the asset of their choice while still being able to fulfill borrow requests through credit delegation.