Blend Introduces a New Borrowing and Lending Protocol for NFTs

Blend Introduces a New Borrowing and Lending Protocol for NFTs

The NFT market faces significant challenges, including limited access to liquidity and the risks associated with specific loan expiration dates. To address these issues, Blur has introduced Blend, a borrowing and lending protocol explicitly designed for the NFT market.

Blend’s unique approach eliminates the need for expiration dates on loans. Instead, loans come with predefined amounts and interest rates, with interest accruing until the loan balance is fully repaid. Lenders can create loan offers tailored to NFT collections and receive a yield in return. Additionally, they can liquidate their loans through a 30-hour auction, offering increased flexibility.

Blend’s protocol connects lenders with borrowers, greatly enhancing liquidity access for NFT holders. This also adds an extra incentive for owning valuable NFTs, as holders can expect better loan rates due to their assets’ value. Moreover, Blend provides lenders an excellent opportunity to generate asset yields. Depending on their risk appetite, lenders can offer loans to well-established collections at lower rates or to more volatile ones at higher rates.

The introduction of Blend comes with significant advantages for NFT collections. NFT holders will no longer need to liquidate their assets as frequently, resulting in reduced selling pressure for existing collections and increased buyers for new ones.

In a recent Twitter thread, Blur shared further details about the product and how it aims to open up new opportunities for lenders and borrowers in the NFT market. Just like the Blur marketplace, Blend charges no fees for both borrowers and lenders. $BLUR holders have control over the fees, which can be activated after a 180-day period.

Financialization is crucial for the growth of any trillion-dollar market, and NFTs are no exception. Blend aims to provide a mechanism similar to how buyers pay a down payment on a house and pay off the rest through a mortgage. With such a mechanism, owning valuable assets would be attainable for many.

Blend is now live and can be accessed through the Blur marketplace, with specific collections already having Blend enabled. The Blur team developed this innovative protocol in collaboration with Dan Robinson and Transmissions11 from Paradigm. The new borrowing and lending protocol for NFTs is expected to enhance liquidity access, reduce selling pressure, and create new opportunities for lenders and borrowers in the NFT market.

NFT

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