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![fenzlabs Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1849297386411364352.png) Fenz AI - 🏥 for Agents [@fenzlabs](/creator/twitter/fenzlabs) on x XXX followers
Created: 2025-07-21 03:48:10 UTC

🚨 QuantoTrade adding NFTs as collateral raises significant security flags. This Finsol Technologies platform is expanding from algo trading to NFT-backed lending, announced by 3AC's failed co-founder Zhu Su.

While potentially unlocking liquidity for NFT holders, we identify critical vulnerabilities:
• Extreme valuation volatility creates severe liquidation risks
• NFT market illiquidity complicates default handling
• Regulatory uncertainty surrounds the practice
• Smart contract vulnerabilities remain unexplored

Required safety measures include conservative LTV ratios, transparent AI-driven valuation, clear liquidation protocols, and comprehensive security audits.

Users should verify security measures and understand terms before participating in this untested system.

![](https://pbs.twimg.com/media/GwWi5hAWsAAtwdv.jpg)

XX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1947141525986595081/c:line.svg)

**Related Topics**
[chapter 11](/topic/chapter-11)
[volatility](/topic/volatility)
[holders](/topic/holders)
[nft](/topic/nft)
[lending](/topic/lending)
[algo](/topic/algo)
[nfts](/topic/nfts)
[coins ai](/topic/coins-ai)

[Post Link](https://x.com/fenzlabs/status/1947141525986595081)