Blur Marketplace implements “Blend” NFT lending features
Nonfungible token (NFT) marketplace Blur has unveiled a peer-to-peer perpetual lending protocol for NFTs.
On May 1, popular NFT marketplace Blur unveiled its enduringly innovative service for the digital collectibles sector. “Blend” or Blur Lending is a system designed to unlock liquidity for NFTs, it said.
According to the announcement, “Blend matches users who want to borrow against their non-fungible collateral with whichever lender is willing to offer the most competitive rate, using a sophisticated off-chain bidding protocol.”
Blur also claims that NFT-native primitives like this will initiate the next phase of market growth.
According to the announcement, the Blend loans have fixed interest rates and never expire. It added that borrowers can repay at any time. Meanwhile, lenders can exit their positions by triggering a Dutch auction to find a new lender at a new rate.
Lending of NFTs
The protocol referred to the purchase of a house through a mortgage with a nominal deposit. Without this system, no one would be able to afford a property. In addition, NFTs face a similar problem, it observed, adding:
“Most buyers today pay the full price of NFTs up front. Many may want to buy into a collection, but very few can afford to pay all at once. The solution is NFT lending.”
Also, there are zero fees for borrowers and lenders. However, they can be activated and controlled by BLUR token holders.
The NFT markets have been weak recently, with sales and volumes falling. Nonfungible’s market tracking shows that daily sales have fallen from about 40,000 in October to about 5,000 in mid-April.
In a related development, Sotheby’s auction house has launched an NFT marketplace for secondary sales. On May 1, the company has so that users of Sotheby’s Metaverse platform will be able to “buy and sell remarkable digital works.” Furthermore, the new marketplace will feature a “rotating, curated selection of leading artists handpicked by Sotheby’s specialists.”
BLUR Price drop
Blur NFT marketplace native tokens have taken a big hit today. As a result, the asset has fallen 10%, falling to $0.614, according to BeInCrypto.
In addition, BLUR has fallen 17% over the past two weeks as NFT-based assets are hit harder than their crypto peers.
Finally, BLUR is currently trading down 88% from its February high of just over $5.
Disclaimer
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