Crypto News: On Monday, May 1, the leading NFT Marketplace Blur announced a new lending protocol for non-fungible tokens (NFTs). The platform, which goes by the name Blend, is designed to enable traders to increase the amount of NFT liquidity available to them by enabling buyers to provide collateral for their token transactions. Potential consumers who were previously left out of pricey NFT collections such as Bored Ape Yacht Club, Loot & CryptoPunk NFTs will now be able to participate in the ecosystem as a result of this development.
Blur Launches Blend NFT Protocol
According to the white paper for the project, the protocol permits perpetual lending. This means that loans do not have a predetermined date when they must be repaid, thereby “allowing borrowing positions to remain open indefinitely until liquidated, with market-determined interest rates.”
Read More: Experts Predict More Bank Runs, Will FED Hike Interest Rates?
As per the inner workings of the protocol, borrowers have the ability to repay their loans at any moment, while lenders have the option to pull out their positions by initiating a “Dutch auction to find a new lender at a new rate”. In the event that the auction is not successful, the borrower’s assets will be liquidated, and the lender will assume ownership of the collateral.
Blend To Charge Zero Fees
NFT marketplace Blur stated that the product was developed in conjunction with Dan Robinson, who is the head of research at the venture capital firm Paradigm and an investor in the decentralized exchange (DEX) Uniswap. Additionally, Blur stated that the product was developed in conjunction with the pseudonymous research associate Transmissions.
8/ Blend has 0 fees for borrowers and lenders.
Like the Blur marketplace, Blend fees are controlled by $BLUR holders and can be turned on after 180 days.
Blend’s code is licensed under BSL like Uniswap V3. Additional use grants are governed by $BLUR holders. pic.twitter.com/M3sewgPP04
— Blur (@blur_io) May 1, 2023
Furthermore, Blend will not charge any fees to traders or lenders, and therefore help in deepening the Blur brand’s integration into the decentralized finance (DeFi) industry. The Blend protocol will go live on Blur as the Season 2 Airdrop reaches an end.
Also Read: LUNC Developer Teases AI App Chain “Block Entropy”, LUNC Price Eyeing $0.1?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/just-in-blur-marketplace-revolutionizes-nft-lending-with-new-p2p-protocol-launch/