Blur Launches Blend; a Peer-To-Peer Lending Platform For NFTs Blend, short for Blur Lending, will allow users to maximize liquidation of their NFTs by enabling buyers to put collateral against their token purchases, offering first-time buyers who are entering the ecosystem to not spend on expensive collections such as Bored Ape Yacht Club and CryptoPunk NFTs.
By Paromita Gupta •
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On Monday, Blur, a non-fungible tokens marketplace, announced Blend, a peer-to-peer perpetual lending protocol for NFTs. The Blur team took to Twitter to share it had collaborated with Paradigm, a crypto/Web3 investment firm, to make Blend offer 10x higher chances of getting opportunities than the existing DeFi protocols and to have greater liquidity for NFTs.
1/ Introducing Blend: the Peer-to-Peer Perpetual Lending Protocol for NFTs.
— Blur (@blur_io) May 1, 2023
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 shared that NFT lending was the solution for people wanting to buy into a collection but cannot pay the hefty fee.
Blend, short for Blur Lending, will allow users to maximize liquidation of their NFTs by enabling buyers to put collateral against their token purchases, offering first-time buyers who are entering the ecosystem to not spend on expensive collections such as Bored Ape Yacht Club and CryptoPunk NFTs.
"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. By default, Blend loans have fixed rates and 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 rate. If that auction fails, the borrower is liquidated, and the lender takes possession of the collateral," read Paradigm's official blog post.
The platform will avoid protocols using Oracle, have zero fees for lenders and borrowers, and roll borrowing positions until lenders are willing to lend against collaterals.
