NFT
Non-fungible token (NFT) marketplace Blur said Monday that it is rolling out a peer-to-peer NFT lending protocol.
Named Blend, short for Blur Lending, the platform enables traders to maximize NFT liquidity by enabling buyers to provide collateral for their token purchases. This allows new buyers to enter the ecosystem previously priced out of expensive collections such as Bored Ape Yacht Club and CryptoPunk NFTs.
Just as homebuyers put a down payment on a home and then pay a mortgage, Blend allows collectors to apply the same principles to NFT markets: they can deposit a percentage of the full NFT price and fund the remaining balance.
Blur posted a Twitter thread sharing the details of the product, explaining how the product will help create opportunities for lenders and borrowers looking to enter the market.
“Any trillion dollar market depends on scaling,” Blur said in a tweet. “Many may want to buy a collection, but few can afford to pay for it all at once. The solution is NFT loans.”
Blur said the product was created in collaboration with Dan Robinson, Head of Research at venture capital firm Paradigm and investor in decentralized exchange (DEX) Uniswap V3, along with pseudonymous research associate Transmissions, who previously helped build the marketplace protocol Seaport. Paradigm is the main investor in Blur.
According to the thread, Blend will have no fees for merchants or lenders, pushing the Blur brand further into the world of decentralized finance (DeFi).
“Blend is a flexible and permissionless floating rate lending protocol that can support arbitrary collateral without oracle dependencies, and allows for whatever interest rates and loan-to-value ratios the market will bear,” the Blend white paper reads. “We’re excited to see how people are using it!”
Blend will be coming to Blur towards the end of Season 2, the $300 million airdrop period of its own BLUR token. According to data from Dune Analytics, while Blur has maintained its position as the leading NFT marketplace in recent months, overall NFT trading volumes have declined in recent weeks.
