How does the value of an NFT is calculated as a loaning asset?

I’ve been thinking, maybe the very high NFT prices is a trick:
-Alice have X value
-So, Alice hires Bob off-chain to submit a rubbish NFT in an auction
-Alice buyes the NFT at price X
-Alice redeems (X-Y), pays Y to Bob
-Alice put the NFT as an asset&get a loan2/3X
-Alice makes a Profit=2/3X-Y

-If we assume Bob won’t settle for less than half Y=X/2
-Then Alice gains X/3 out of nowhere, probably less than the loan cost ( I mean interest rate)

-Makes me wonder, what are the liquidation rules for NFT assets??

Alice put the NFT as an asset&get a loan2/3X

If this NFT is rubbish, I don’t think the loanee will give Alice 2/3X as a loan, right?

The collateral ratio for the rubbish NFT will be low. Also because the liquidity for NFT is much poorer than popular tokens such as ETH, the collateral ratio will generally be lower.

On

OK, that leads to the question on what bases does the loaning platform evaluate any NFT?
Is it just the auction price or what?

Definitely not just the price.

The loan amount equals to evaluated asset price times the discounted ratio.

Discount ratios is determined by a number of factors such as collateral asset type (the more stable, the higher the ratio will be, such as real estate typically has 80%+ discounted ratio), type of lender (the bank, your friend, etc.), length of loan (short term or long term), and many more.

I am not an expert. Someone should answer this better. But hopefully this can provide a bit info.

The point is this is not a bank where humans will sit and make judgmental decisions on a case by case bases in addition to the rules
DeFi systems work automatically based on just equations.

The point is still the same though, right? Properties like the stability of the collateralized asset can be calculated as the volatility of the price history.

If nothing new happened since Mar2021, I think this nearly answers how

Blockquote
Many different projects are trying to create efficient price discovery mechanisms. Most of them use auction and sale models, but it seems that they are insufficient as we still don’t have an appropriate price discovery mechanism.

It seems the area is little vague, he didn’t mention true example cases, I think the price determining is the main problem among others; like if represented as NFT how to add to it if u want to, becomes like Bitcoin UTXOS coin selection,…
Other problems if u add an ERC-20 representation

Can always place the NFT inside an emblemvault along with a financial backing of cryptocurrencies.

Thanks for the link anyway, but It doesn’t say how they calculate the collateral value of the NFT as a loaning asset