Can NFT's be used in DeFi?

NFTs or nonfungible tokens were created on Ethereum as an asset class of assets of their own. They only overlapped with DeFi as the use cases of NFTs developed and expanded. Today, we can talk about a physical house or piece of land in the metaverse on a cryptocurrency platform known as Decentraland. There are a lot more places where physical assets can be programmed to exist on the blockchain essentially making these assets, NFTs. Since in traditional finance, you could borrow money and use your physical asset as collateral, it only made sense that NFTs started to serve the same purpose as physical collaterals in DeFi. The Idea of taking loans and using tokens as collateral started with Rocket Finance, but there are now other players such as Drops DAO, Banksea Finance, Strip Finance, and Unbanked competing in this growing area of DeFi.