The advantage of doing something this way is the efficiency in which it transforms a widely recognized digital asset, a domain name, into a liquid piece of collateral for a loan. For example, a loan can be made instantly just with a smart contract, it can be transferred to escrow (while still working the whole time) instantly, and also transferred to the lender in the instance of a default without any headache or hassle. The hard part, if one could even consider it hard, is that in order for the domain name to turn into an NFT, it has to be transferred from the owner’s current domain name registrar to the one operated by Namefi. This can be accomplished in less than an hour. It’s the exact same process as if one were to transfer a domain name from say Godaddy to Namecheap. Namefi does all the techy stuff that turns it into an NFT and the user can still manage their regular DNS settings via Namefi...
