Blur Launches P2P NFT Lending Protocol
Leading non-fungible token (NFT) marketplace Blur has built a peer-to-peer perpetual lending protocol Blend — Blur Lending — in partnership with Paradigm’s Dan Robinson and Transmission’s 11.
According to the NFT market, transactions on the new protocol will be free for the first 180 days. However, the fees can be turned on after this period by BLUR token holders via the Decentralized Autonomous Organization (DAO) governance.
Blend to unlock NFT’s liquidity
According to the white paper, Blend will help unlock liquidity for NFTs by providing loans with fixed interest rates that never 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 interest rate.”
The white paper highlighted how the new protocol differs from competitors such as BendDAO and NFTfi, with its peer-to-peer model that provides access to liquidity by matching lenders with borrowers.
The protocol has other features such as allowing lenders to liquidate their NFTs at any time, no expiration for loans as long as the lender is willing to lend, avoiding Oracle dependencies, etc.
Obscurity so these features would make NFT lending “intuitive for borrowers and safe and flexible for lenders.”
According to Dune analytics data, the cumulative volume of NFT lending exceeded $1 billion in April. The space is dominated by Paraspace, which controls around 48% of the weekly NFT Finance market share.
Blurred Token Tanks 10%
Following the news, the NFT marketplace’s native token fell 5.47% on the 1-hour candle to trade at $0.64353 at press time, according to CryptoSlate’s data. The asset is down 10.47% in the last 24 hours.
This is in stark contrast to its performance on seven-day metrics, where it is up about 9%, while it has risen 13% over the past 30 days.
Meanwhile, Blur has overtaken OpenSea as the dominant NFT marketplace in recent months. The marketplace accounts for over 50% of the trading volume in the industry, according to Dune analytics data.
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