NFT Lending · Review
ActiveFungify Review 2026: NFT Index and Cross-Margin Lending
Fungify is an Ethereum protocol combining an NFT index token with cross-margin lending pools that accept NFTs as collateral. Activity is small, so it suits experienced NFT users rather than newcomers.
By the DappsAtlas editorial team · Updated
DappsAtlas score
5.5/10
Mixed
Our verdict on Fungify
5.5/10Fungify is an Ethereum protocol that pairs a blue-chip NFT index with cross-margin lending pools that accept NFTs as collateral. Its main strength is the combination of index exposure and NFT-backed borrowing under a non-custodial design. The main caveat is scale: TVL is only about $132K, fees are not published here, and NFT collateral is volatile. It suits experienced NFT holders willing to read the audits and start small.
Score breakdown
How Fungify scores
- Security
- 5.5/10
- Ease of use
- n/a
- Fees
- n/a
- Features
- 6.5/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Fungify?
Fungify is a DeFi protocol on Ethereum with two products: an NFT Index and lending Pools. DefiLlama lists it under lending, with a total value locked of about $131,845 and a listing date of March 2024.
The Index is a market-cap weighted basket of blue-chip NFTs that holders can buy as one token. Pools is a cross-margin lending platform where NFTs and other assets can be used for borrowing and lending.
The project's own blog describes it as a non-custodial NFT peer-to-contract marketplace and algorithmic lending protocol. Recent posts mention a partnership with NFT Price Floor and a feature to unlock vesting BERA tokens in Berachain NFTs. Usage looks modest, and the project does not include fees or team details.
How Fungify works
Fungify has two parts. The Index holds a market-cap weighted basket of blue-chip NFTs, and holders get exposure by buying a single token instead of several NFTs. The index is said to earn yield by lending itself out.
Pools is a cross-margin lending platform. Users deposit assets, including NFTs, as collateral, borrow against them and can supply assets to earn yield. Cross-margin means collateral is pooled across positions rather than tied to one loan.
The project describes itself as a non-custodial peer-to-contract marketplace and algorithmic lending protocol. That means users trade with smart contracts rather than directly with a counterparty. For the Index, users are incentivized to keep it balanced through varying token rewards.
6 features
Key features
01
NFT Index
A market-cap weighted basket of blue-chip NFTs, described as the S&P 500 of NFTs, giving broad exposure through one token.
02
Cross-margin lending pools
Cross-margin lending platform for borrowing and lending any asset, including NFTs, while earning yield.
03
Yield-bearing index
The index is described as earning yield by lending itself out.
04
Rebalancing incentives
Fungify says it will give more or less index tokens depending on how out of balance the Index is, to encourage rebalancing.
05
Non-custodial design
Described as a non-custodial NFT peer-to-contract marketplace with instant NFT sales and NFT-backed loans.
06
Vesting-token liquidity
A promoted use case lets holders unlock vesting BERA tokens inside Berachain NFTs for instant liquidity.
Pros and cons
What we like
- Combines index exposure and lending in one protocol
- Accepts NFTs as collateral inside a cross-margin pool
- Non-custodial design per the project's description
- Two audits listed on DefiLlama
- Active publishing, including a 2024 partnership and a Berachain NFT feature
Watch out for
- Very small TVL of about $131,845, which suggests limited liquidity and usage
- Official URL is a Substack blog, so product details and interface access are not clear from public sources
- NFT collateral is volatile and illiquid, which raises liquidation and bad-debt risk
- Fee, interest rate and liquidation parameters are not published publicly
- Only Ethereum is listed, so there is no multi-chain access
- Audit scope and auditors are not named publicly, only that two audits are listed
Fungify fees
Fee levels, interest rates and liquidation penalties are not published. Users would normally see borrow rates, supply yields and any index mint or redeem terms inside the app, and should confirm them before depositing.
On Ethereum, users also pay network gas fees on every transaction, which can matter for small positions.
Is Fungify safe?
DefiLlama lists two audits for Fungify, but public sources do not name the auditors or the findings. No incidents or hacks are mentioned publicly, though that is not proof none occurred.
The protocol is described as non-custodial, so users keep control of assets until they deposit them into contracts. The main risks are smart-contract bugs, NFT price drops causing liquidations, thin liquidity given low TVL, and oracle or valuation problems for illiquid NFTs. Regulatory status is not stated.
6 steps
How to get started with Fungify
- 1
Read the Fungify blog and About page to understand the Index and Pools products.
- 2
Check the audit reports and confirm the contracts you are interacting with through official channels.
- 3
Decide whether you want index exposure, lending yield or an NFT-backed loan.
- 4
Connect a self-custody Ethereum wallet and start with a small amount.
- 5
Review the borrow rate, collateral factor and liquidation terms before borrowing against an NFT.
- 6
Monitor your positions, since NFT price drops can trigger liquidation.
Who Fungify is for
Fungify suits experienced NFT holders who want to borrow against their NFTs, or who want diversified blue-chip NFT exposure through one token. It is less suited to beginners, to anyone needing deep liquidity, or to users who cannot tolerate liquidation and smart-contract risk.
Fungify FAQs
What is Fungify?
Fungify is made of two parts: an Index and Pools. The Index is a market-cap weighted basket of blue-chip NFTs, and Pools is a cross-margin lending platform where assets, including NFTs, can be borrowed and lent.
Does Fungify have a token?
DefiLlama lists a token called FUNG for Fungify. Public sources also refer to an index token bought as $NFT, which gives broad NFT exposure. The exact relationship between the two is not explained.
Which blockchain does Fungify run on?
DefiLlama lists Ethereum only. A Google snippet mentions unlocking vesting BERA tokens held in Berachain NFTs, but the project does not say Fungify runs on Berachain.
Is Fungify safe?
DefiLlama shows two audits listed, but the project does not say who performed them or what they covered. Any DeFi protocol carries smart-contract risk, and NFT-backed lending adds price and liquidation risk, so read the audit reports yourself.
How big is Fungify?
Public sources show TVL of roughly $131,845 and a 1.8% rise over seven days. That is small, so liquidity for borrowing and lending may be thin.
Compare
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How we checked
Sources
Last updated . Spotted an error? Tell us and we will correct it.