As per the recent development, the renowned NFT marketplace, Blur, announced a new lending protocol for NFTs. The platform, dubbed Blend, is designed to empower traders to significantly increase the amount of NFT liquidity available for them. However, they would proceed to do this by enabling buyers to provide considerable collateral for their token transactions. All potential customers, previously left out on expensive NFT projects, would be able to participate in the ecosystem through this development.
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 stated,
“Blur was built on the principle that tokens are eating the market of fungible assets and NFTs are eating the trillion-dollar market of non-fungible assets.”
Blend does not have any Oracle dependencies, nor any expiration, and this would eventually allow borrowing positions to open for an indefinite amount of time until its termination. At the same time, developers claim that the protocol would not collect any fees from both lenders and borrowers. Through the use of a perpetual lending protocol, borrowers and lenders would be able to extend the loan expiration time by a default predetermined period.
If a lender feels like terminating the loan against the wishes of the borrower, an interest rate Dutch Auction for refinancing would be held if the borrower does not repay the debt at the end of expiration. Furthermore, the auction starts at a 0% refinance interest that will start to rise gradually in the future.
The platform said,
“In Blend, an NFT may be liquidated whenever a lender triggers a refinancing auction and nobody is willing to take over the debt at any interest rate.”
Blend Continues To Set Standards
Developers have mentioned that borrowers would have the option of paying their loans at any time on Blend. If borrowers look forward to changing the amount to get a better interest rate, it would be possible for them to take a new loan out of the collateral, and use the new principal to pay the old loan.
Blur added,
“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.”
Furthermore, Blur stated that the project was developed as a joint effort with Paradigm, and highlighted how it aspires to deepen the brand integration of Blur into the DeFi industry. The Blend Protocol is expected to go live on Blur as soon as the Season 2 airdrop comes to an end.
Similarly, Blur was launched in the third quarter of 2022 and has been continuously rewarding its customers with a series of care packages redeemable for BLUR tokens since Feb 14 this year. The intention of doing so is to increase the trading activity on the platform. With that in mind, Blur has crossed OpenSea in terms of trading volume.
