The popular marketplace NFT, which has quickly positioned itself as one of the market leaders, announced the launch of its peer-to-peer lending platform.
One of the trends that has been taking its place in the Web3 ecosystem is the figure of lending, which has been experiencing sustained growth across different platforms.
A recent case is that of Chainlinkwhen a few days ago they announced their new service on lending and renting NFTs. This service involves operations with non fungible tokens in the field of gaming (GameFi), giving new ways of earning money to players.
In turn, another precedent has been the link between Wombat and Credit Metaverse, with a quite similar objective: the launch of loans on NFTs, with the main goal of revolutionizing the Web3 gaming ecosystem on WAX. In this way, Credit Metaverse provides its NFT collateralized lending service.
And in this sense, one of the most popular NFT marketplaces with the highest volume of transactions in the market could not be left behind. A few days ago, Blur announced its new service called Blur Lending or “Blend”, which allows to “mortgage” purchases of NFTs, through a system of combined loans.
In this way, the service consolidates a new peer-to-peer perpetual lending protocol for the acquisition of non-fungible tokens. This protocol combats a typical problem of the NFT ecosystem, which is the difficulty of unlocking liquidity for digital collectibles.
Specifically, one of the advertisements claims that Blend matches users who want to borrow against their NFT collateral with anyone who wants to lend liquidity (lender) by offering a competitive rate in the marketplace, using a protocol to that effect.
Some of the most relevant features of this new service are that the loans will have fixed rates and no maturity date. Also, borrowers will be able to repay the loan at any time. Blend will have no commissions for traders or lenders, an issue that will play in Blur’s favor.
One of the issues highlighted by the Blur team is the situation that there are currently many buyers who must pay the full value of an NFT upfront. This is a complex situation, since many want to buy a complete collection, but only a few can afford it. Thus, the loan system comes to solve this problem.
In this sense, this new protocol will bring as a consequence the entry of new buyers to the ecosystem, who are currently excluded by the high prices of NFT blue chip collections, as are Bored Ape, CryptoPunksamong others.
This service is made possible through a partnership with Daniel Robinson (head of research at the venture capital company “Paradigm”).Paradigm“and investor in Uniswap) and transmissions11Blend will therefore enable lending opportunities 10 greater than those offered by traditional DeFi protocols, as well as unlocking greater liquidity in the NFT field.
The new Blend platform is now fully operational, so to date it has positioned itself as the #1 NFT lending protocol in volume and users on Ethereum, having originated $16M in loan volume since its launch, an approximate 25x more loan volume than the previous market leading protocol.
Written by Luciano Garriga (Tw: luchogarriga) for NFT Express.
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