Binance Announces New Non-Fungible Token (NFT) Borrowing Program, Binance NFT Loan
The world’s largest crypto exchange by trading volume, Binance, has released a new non-fungible token (NFT) loan feature.
According to a new Binance announcement, the platform will offer zero gas fees and the ability to borrow Ethereum (ETH) without the need to sell assets.
The loan feature aims to cater to those who want quick access to funds but don’t want to part with their NFTs. It uses what Binance calls a “Peer to Pool” mechanism with Binance NFT acting as a loan pool, and the amount of ETH that users can borrow depends on the floor price of their NFTs. Data for the system comes from multiple sources, including oracle service Chainlink (LINK) and NFT marketplace OpenSea.
At time of writing, Binance’s NFT Loan feature supports just four well-known collections, but more are expected to roll out soon.
“Initially available with select high-profile NFT projects such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles, the innovative feature introduces the benefits of decentralized finance (DeFi) to the Binance NFT community. More collections are expected to be added in the near future.”
Binance launched its NFT platform in June of 2021 and has steadily been adding features ever since. In March, the crypto exchange launched a beta version of an artificial intelligence-based NFT image generator called “Bicasso.”
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Featured Image: Shutterstock/Juan Manuel Rodriguez/WindAwake