DeFi and NFTs are the core pillars of Web3. NFTs offer unique positions in DeFi with natural value derived from their utility and scarcity.

Cool Protocols that use NFTs in DeFi

BendDAO

Use your NFTs as collateral to borrow ETH or deposit your ETH and earn yields instantly

Uniswap 

Uniswap V3 liquidity positions are represented as NFTs.

Timeswap 

Issues their Collateralized Debt Token as an ERC-721 token, an NFT

NFTfi

NFTfi allows NFT holders to borrow cryptocurrency from lenders by using their NFTs as collateral