Binance Launches Ethereum Loans Secured by NFTs

Binance Launches Ethereum Loans Secured by NFTs


Binance NFT launches a new feature, Binance NFT Loan, allowing NFT owners to secure Ethereum loans using their NFTs as collateral, offering instant liquidity, competitive interest rates, and promotional discounts on borrowing interest rates.

Binance Crypto exchange Non-Fungible Token (NFT), a prominent player in the non-fungible crypto token (NFT) market, has announced the launch of a new feature, Binance Crypto exchange Non-Fungible Token (NFT) Loan. The service, set to go live at 11:00 (UTC) on May 26, 2023, will enable Non-Fungible Token (NFT) owners to secure Ethereum (ETH) loans using their Non-Fungible Token (NFTs) as collateral.

This new feature is designed to provide Non-Fungible Token (NFT) owners with an alternative way to leverage the value of their assets without selling them. The structure of the loan service is overcollateralized, open-term, and peer-to-pool, with different Loan-to-Value (LTV) ratios for each Non-Fungible Token (NFT) collateral-loan pair position.

The service promises instant liquidity, zero gas charges, liquidity protection, and competitive interest prices. Nonetheless, as of the launch date, the service will only support Ethereum (ETH) loans, and Non-Fungible Token (NFTs) from specific collections – Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles – as collateral alternatives. Binance Crypto exchange Non-Fungible Token (NFT) has indicated intends to enhance the range of borrowable assets and Non-Fungible Token (NFT) collateral options in the future.

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To coincide with the launch, Binance Crypto exchange Non-Fungible Token (NFT) is offering a promotional discount on Non-Fungible Token (NFT) Loan interest prices. Starting from the launch time, users who secure an Non-Fungible Token (NFT) loan from Binance Crypto exchange Non-Fungible Token (NFT) can enjoy a 70 percent discount on the present borrowing interest prices. The duration of this promotion is unspecified.

Binance Crypto exchange Non-Fungible Token (NFT) has expressed its commitment to integrating more Non-Fungible Token (NFT) collections and blockchains teck into its loan product and optimizing its features to broaden its offerings. To use the Binance Crypto exchange Non-Fungible Token (NFT) loan, users are required to complete identity verification. Non-Fungible Token (NFTs) can be found via the Binance Crypto exchange Non-Fungible Token (NFT) Marketplace under My Non-Fungible Token (NFTs) > Collected.

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Nonetheless, it’s critical to note that there are inherent dangers associated with Non-Fungible Token (NFT) Loans. Non-Fungible Token (NFTs) are subject to high market danger, and the danger of liquidation increases when the value of the Non-Fungible Token (NFT) collateral falls significantly. Binance Crypto exchange advises users to conduct their own research and seek independent professional advice to determine if this product is suitable for them.

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