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.

Says Binance,

“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