The NFT market Blur on Monday launched a brand new NFT-focused lending platform that operates with out expirations and with no exterior worth oracles like different lending platforms depend on.
The brand new lending platform was launched on Twitter and in an in depth whitepaper by Dan Robinson, a lawyer and researcher at crypto funding agency Paradigm, and one of many important backers of the mission, saying in regards to the mission that it “supports arbitrary collateral, has no oracles, and has no expirations.”
In keeping with Robinson’s whitepaper, Blend differs from conventional lending protocols by permitting borrowing positions to be open for an indefinite interval, with market-based rates of interest.
“Blend matches users who want to borrow against their non-fungible collateral with whatever lender is willing to offer the most competitive rate, using a sophisticated off-chain offer protocol,” the whitepaper mentioned.
It added that Blend loans by default have mounted rates of interest and can by no means expire.
“Borrowers can repay at any time, while lenders can exit their positions by triggering a Dutch auction to find a new lender at a new rate. If that auction fails, the borrower is liquidated and the lender takes possession of the collateral,” the whitepaper defined.
Unlocking liquidity of NFTs
Robinson’s introduction matches what the Blur staff wrote in regards to the new platform on Twitter, the place it referred to as it a strategy to unlock the liquidity of NFTs.
The staff defined in its Twitter thread that patrons of NFTs face the identical downside as dwelling patrons in that few persons are capable of pay the total worth up entrance, whether or not shopping for a home or a prime NFT assortment.
“Many may want to buy into a collection, but very few can afford to pay it all at once. The solution is NFT lending,” the Blur staff wrote.
The staff added in a later launch thread that the protocol for now accepts the three widespread NFT collections Punks, Azukis, and Miladys as collateral, with extra to be added “soon.”
Utilizing the brand new protocol, gadgets from these collections can now be used as collateral to borrow ETH on, or an investor can merely purchase an merchandise from one of many collections now and pay it down later.
“[…] you can repay your borrow at any time to take full ownership of your NFT. Or, list your NFT any time and keep any profit when you sell,” the staff wrote.
