Binance Unveils Revolutionary NFT Loan Option

Binance Unveils Revolutionary NFT Loan Option

Binance crypto exchange launches NFT loan feature allowing users to use their digital assets as collateral and borrow cryptocurrency, without having to sell their NFTs, providing easy and quick access to funds and tapping into DeFi-related benefits in the Binance NFT community.

The Binance Crypto exchange cryptocurrency exchange has started its Non-Fungible Token (NFT) journey by launching a loan feature, which will allow users to use their Non-Fungible Token (NFTs) as collateral to borrow cryptocurrency. 

Borrow Cryptocurrency Against NFT

The move marks the entry of the world’s largest digital currency exchange into the Non-Fungible Token (NFT) lending space. After launching its Non-Fungible Token (NFT) marketplace in June 2021, the latest Non-Fungible Token (NFT) lending feature will give users easy and quick access to funds without having to sell their Non-Fungible Token (NFTs), allowing them to borrow digital currencies by just putting their digital assets as collateral. 

Head of Product at Binance Crypto exchange, Mayur Kama, announced the latest information, saying,

“ Binance Crypto exchange Non-Fungible Token (NFT) is building! We’ve added numerous features that make it a one-stop shop for Non-Fungible Token (NFT) trading and financial services for our community. We already have minimal  charges and the Binance Crypto exchange peace of mind; now Non-Fungible Token (NFT) Loans will add a new type of liquidity for Non-Fungible Token (NFT) holders, allowing them to join the market without letting go of their precious NFTs.”

Decentralized Finance Advantages For Users

The feature will allow users to at the beginning borrow only Ether (ETH) against Non-Fungible Token (NFTs) that have been marked as “blue-chip.” These include trending digital investment collections like the Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles. Collectors with Non-Fungible Token (NFTs) from any of these collections will be able to put their assets as collateral and borrow ETH. 

The notice from the company has argued that more Non-Fungible Token (NFT) collections will be added to the “blue-chip” list, broadening the borrowing opportunities for its users. 

The feature likewise allows users to tap into the DeFi-related advantages in the Binance Crypto exchange Non-Fungible Token (NFT) community, as it operates on a “Peer to Pool” mechanism, where data is sourced from numerous providers, including the oracle service Chainlink and the OpenSea Non-Fungible Token (NFT) marketplace. The Binance Crypto exchange Non-Fungible Token (NFT) marketplace acts like a loan pool, and the floor price of the collateralized Non-Fungible Token (NFTs) decides the amount of Ethereum (ETH) a user can borrow. 

No Gas fees

1 notable advantage of the Binance Crypto exchange Non-Fungible Token (NFT) loan feature is the absence of gas charges or Ethereum (ETH) transaction charges, making it a cost-effective solution for users seeking liquidity. Additionally, the interest prices on Non-Fungible Token (NFT) loans as of now stand at 7.91 percent per annum, with loan-to-value ratios ranging from 40 percent to 60%, as stated on the Binance Crypto exchange Non-Fungible Token (NFT) website.

Binance’s foray into Non-Fungible Token (NFT) lending further expands its Non-Fungible Token (NFT) offerings, complementing its Non-Fungible Token (NFT) marketplace that was introduced in April 2021. Since its launch, Binance Crypto exchange has continually added features to strengthen user experience, including the past few integration of Ordinals, Bitcoin-based Non-Fungible Token (NFTs), alongside existing blockchain tech support for Ethereum (ETH), Polygon, and Binance’s native BNB Chain.

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