Binance NFT Rolls Out NFT Loans -Threatens Blur’s NFT Lending Market Dominance
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.
We are excited to announce our latest product, the Binance NFT Loan.
Get instant liquidity with your selected blue-chip NFTs.
🔶 Instant Borrowing
🔶 Zero Gas Fees
🔶 Liquidation Protection
🔶 Competitive Interest Rate
Read the blog for more details:
— Binance NFT (@TheBinanceNFT) May 25, 2023
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.
1/ Introducing Blend: the Peer-to-Peer Perpetual Lending Protocol for NFTs.
Built in collaboration with @danrobinson and @transmissions11 at @paradigm, Blend enables 10x higher yield opportunities than current DeFi protocols and unlocks greater liquidity for NFTs.
Here’s how 👇 pic.twitter.com/uOFC6i3LSq
— Blur (@blur_io) May 1, 2023
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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