Blur’s NFT Lending protocol divides the crypto community – Cryptopolitan
Blur, a new NFT lending system, has been making headlines in the crypto industry lately. Blur has just unveiled the Blend collateralized lending protocol, which provides a buy-now, pay-later way to buy NFTs. Members of the community reacted differently. Some see it as a significant step forward for the space, while others have asked the United States Securities and Exchange Commission (SEC) to protect users from such products.
The platform launched Blend, a peer-to-peer perpetual lending protocol created with the assistance of venture capital firm Paradigm, on May 1. The protocol accepts NFT collateral, and the team believes it will not burden lenders or borrowers.
One community member welcomed Blur’s new location, calling it “massive for the space” and more efficient. They posted on Twitter:
Meanwhile, another Twitter user believes the new OpenSea competitor development is a good diversion from the “general negative sentiment” in the NFT space. The community member can refer to the decreasing number of NFT buyers in April. According to statistics from analytics website NFTGo, sellers dominated the NFT market last month.
While some emphasized the benefits of NFT lending, others dismissed it. A member of the community emphasized the possibility of defaulting on the loan and losing a lot more money. Meanwhile, a collector of NFTs took the opportunity to give a lesson on NFTs.
Jesse Hynes, an attorney for Web3, tagged the SEC’s Twitter account and stated that the commission should protect investors from such behavior. Hynes states that it is “extremely dangerous.”
Blur has positioned itself in the NFT market, prompting OpenSea to take action in what the community informally refers to as the “NFT market wars.” OpenSea introduced 0% fees on February 18 to win back users from its incoming rival. OpenSea has also recently launched a sophisticated NFT marketplace aggregator in an additional attempt to disrupt the boat.
What is the Blend lending protocol?
Obscurity launched a peer-to-peer NFT lending protocol on Monday. Blend, short for Blur Lending, is a platform designed to enable traders to maximize NFT liquidity by allowing token buyers to post collateral. This will allow buyers who were previously priced out of expensive collections, such as Bored Ape Yacht Club and CryptoPunk NFTs, to gain access to the ecosystem.
In the same way that home buyers make a down payment and then pay off a mortgage, Blend will enable collectors to apply the same principles to NFT markets, allowing them to set up a percentage of the total NFT price and finance the remaining balance.
The entity posted a Twitter thread describing the product and describing how it will help lenders and borrowers looking to enter the market by creating new opportunities.
The NFT platform stated that the product was developed in collaboration with Dan Robinson, head of research at venture capital firm Paradigm and an investor in decentralized exchange (DEX) Uniswap version (v)3, and Transmissions, a pseudonymous researcher who previously contributed to the development of the market protocol Seaport. Paradigm is Blur’s largest investor.
According to the thread, Blend will not charge merchants or lenders any fees, further integrating the Blur brand into the world of decentralized finance (DeFi).
Blend joins the NFT platform near the end of Season 2’s airdrop period of $300 million worth of the original BLUR token. According to Dune Analytics statistics, while Blur has been the dominant NFT marketplace for months, overall NFT trading volumes have declined in recent weeks.
