Binance NFT Rolls Out NFT Loans ‑Threatens Blur’s NFT Lending Market Dominance

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Binance NFT, a dig­i­tal mar­ket plat­form for non-fun­gi­ble tokens and a sub­sidiary of Binance cryp­to exchange, has launched a new lend­ing fea­ture let­ting cryp­to traders bor­row cryp­to assets using NFTs as their col­lat­er­al. Binance NFT now pos­es a threat to Blur’s NFT lend­ing mar­ket dominance.

Binance NFT Rolls Out NFT Loans

In a May 25 site pub­li­ca­tion, Binance NFT con­firmed launch­ing the lend­ing plat­form on its mar­ket­place. The new lend­ing plat­form will enable users to bor­row cryp­to, such as Ethereum, using NFTs as col­lat­er­al, mark­ing its debut in the NFT lend­ing market.

Launched in April 2021, Binance NFT is an NFT mar­ket plat­form allow­ing users to buy, sell and trade NFTs. The NFT mar­ket­place cur­rent­ly sup­ports NFTs host­ed on BNB Chain, Ethereum, and Poly­gon. Binance recent­ly announced plans to include Bit­coin NFTs.

Accord­ing to the announce­ment, the Binance NFT mar­ket­place will let users bor­row Ethereum (ETH) using pop­u­lar blue-chip NFTs such as Bored Ape Yacht Club, Mutant Ape Yacht Club, Azu­ki, and Doo­dles. The NFT mar­ket­place has promised to include more NFTs in the com­ing weeks.

The Binance NFT Loan fea­ture will offer cryp­to loans at an inter­est rate of 7.91%, with loan val­ues rang­ing from 40% to 60%. These loans come with zero gas fees or Ethereum trans­ac­tion fee charges. Binance NFT mar­ket­place allows users to bor­row cryp­to with­out a pro­cess­ing period.

Binance Threatens Blur’s NFT Lending Market Dominance

Binance NFT mar­ket­place joins a rapid­ly grow­ing list of non-fun­gi­ble token mar­ket­places offer­ing NFT lend­ing ser­vices. In that con­text, the Binance NFT now pos­es a new threat to Blur, the dom­i­nant NFT mar­ket­place in the NFT lend­ing market.

Ear­li­er this month, the Blur NFT mar­ket­place launched a sim­i­lar new non-fun­gi­ble token lend­ing pro­to­col dubbed “Blend.”The Blend is a peer-to-peer per­pet­u­al lend­ing pro­to­col for NFTs, allow­ing users to use their NFTs as col­lat­er­al to access Ethereum liquidity.

Blur Lend­ing plat­form allows lenders to set their inter­est rates and loan-to-val­ue ratios. Blur lend­ing plat offers loans with a “fixed rate” and “no expiry.” These loan rates are made on a peer-peer basis with­out inter­me­di­ary ora­cles to set col­lat­er­al­iza­tion ratios.

Blend lets users access expen­sive blue-chip NFTs for a small down pay­ment. Blur users can only use Blend on NFT col­lec­tions, includ­ing Azu­ki, Cryp­toP­unks, and Mila­dy Mak­er. The plat­form recent­ly added sup­port for Bored Ape Yacht Club, Mutant Ape Yacht Club, and Oth­erdeed for Oth­er­side NFT col­lec­tions. Binance NFT is antic­i­pat­ed to rival Blur in NFT lend­ing mar­ket dominance.

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