# Pine Now Pay Later (PNPL)

NFT buyers can get a mortgage for the NFT purchase on open marketplaces in one atomic transaction. The transaction will be settled with funds from the buyer’s wallet and loan from the protocol in a ratio that the buyer deem appropriate and can satisfy the loan’s LTV requirements. The newly acquired NFT will be owned by the protocol as a collateral for the loan that the buyer initiated during the transaction in the same way as an ordinary NFT loan.

The end result is exactly the same for Pine Loan and PNPL. The difference is only in the sequence of events.

#### Pine Loan

1. Alice owns an NFT 
2. Alice pledges that NFT to a lending pool on the Pine protocol to get a loan 
3. Alice gets extra ETH equivalent to the loan amount in her wallet 
4. Alice has an NFT-backed loan position and when she pays back the amount owed for the loan position, she will receive the NFT in her wallet

#### PNPL

1. Alice has some ETH in her wallet and wants to purchase an NFT on OpenSea from a collection that has supported loan pool(s) on the Pine protocol 
2. In one atomic transaction 
   * Alice gets a loan from a loan pool 
   * Alice pays ETH from her wallet 
   * Alice buys the NFT from OpenSea 
3. Alice has an NFT-backed loan position and when she pays back the amount owed for the loan position, she will receive the NFT in her wallet

This service can effectively facilitate NFT margin trading with only a fraction of the initial cost in acquiring an NFT, providing leverage to traders in a simple atomic transaction. With a term loan instead of continuous loan structure, traders face less pressure from the price volatility and a longer runway before a margin call is triggered.


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