NFT Marketplace Blur Allows Ethereum Borrowing with JPEG Collateral
The world of NFT-backed loans just got more exciting! Leading Ethereum NFT marketplace Blur has launched Blend, a peer-to-peer lending protocol for NFT assets that provides perpetual loans with no set timeframes for repayment. This means that the loans continue to accrue interest until they’re repaid or until the lender triggers a refinancing auction. The loans also do not rely on external data sources, giving more transparency to borrowers and lenders. Blend allows NFT collectors to take loans out on their assets and liquidity providers to earn interest by loaning out ETH with NFT serving as collateral. According to Blur, Blend enables 10x higher yield opportunities than current DeFi protocols and unlocks greater liquidity for NFTs. The protocol is built in collaboration with Dan Robinson and Transmissions11 from Paradigm, which led Blur’s $11 million seed funding round. The new protocol currently has no fees for borrowers or lenders, but BLUR token holders can vote to enable fees after 180 days. With Blend’s exciting features and the increasing demand for NFT-backed loans, the NFT lending market is bound to continue to grow, especially with NFTfi and BendDAO leading the charge with over $1 billion in total loan value to date
Clever Robot News Desk 2nd May 2023
