The Binanceย Cryptoย exchange cryptocurrency exchange has started its Non-Fungibleย Tokenย (NFT) journey by launching a loan feature, which will allow users to use their Non-Fungibleย Tokenย (NFTs) as collateral to borrow cryptocurrency.ย
Borrow Cryptocurrency Against NFT
The move marks the entry of the worldโs largest digitalย currency exchange into the Non-Fungibleย Tokenย (NFT) lending space. After launching its Non-Fungibleย Tokenย (NFT) marketplace in June 2021, the latest Non-Fungibleย Tokenย (NFT) lending feature will give users easy and quick access to funds without having to sell their Non-Fungibleย Tokenย (NFTs), allowing them to borrow digitalย currencies by just putting their digital assets as collateral.ย
Head of Product at Binanceย Cryptoย exchange, Mayur Kama, announced theย latestย information, saying,
โ Binanceย Cryptoย exchange Non-Fungibleย Tokenย (NFT) is building! Weโve added numerous features that make it a one-stop shop for Non-Fungibleย Tokenย (NFT) trading and financial services for our community. We already have minimalย charges and the Binanceย Cryptoย exchange peace of mind; now Non-Fungibleย Tokenย (NFT) Loans will add a newย type of liquidity for Non-Fungibleย Tokenย (NFT) holders, allowing them toย joinย the market without letting go of their precious NFTs.โ
Decentralizedย Finance Advantages For Users
The feature will allow users to atย theย beginning borrow only Ether (ETH) against Non-Fungibleย Tokenย (NFTs) that have been marked as โblue-chip.โ These include trending digital investment collections like the Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles. Collectors with Non-Fungibleย Tokenย (NFTs) from any of these collections will be able to put their assets as collateral and borrow ETH.ย
The notice from the company has arguedย that more Non-Fungibleย Tokenย (NFT) collections will be added to the โblue-chipโ list, broadening the borrowing opportunities for its users.ย
The feature likewise allows users to tap into the DeFi-related advantages in the Binanceย Cryptoย exchange Non-Fungibleย Tokenย (NFT) community, as it operates on a โPeer to Poolโ mechanism, where data is sourced from numerous providers, including the oracle service Chainlink and the OpenSea Non-Fungibleย Tokenย (NFT) marketplace. The Binanceย Cryptoย exchange Non-Fungibleย Tokenย (NFT) marketplace acts like a loan pool, and the floor price of the collateralized Non-Fungibleย Tokenย (NFTs) decides the amount of Ethereumย (ETH) a user can borrow.ย
No Gas fees
1 notable advantage of the Binanceย Cryptoย exchange Non-Fungibleย Tokenย (NFT) loan feature is the absence of gas charges or Ethereumย (ETH) transaction charges, making it a cost-effective solution for users seeking liquidity. Additionally, the interest prices on Non-Fungibleย Tokenย (NFT) loans asย ofย now stand at 7.91 percent per annum, with loan-to-value ratios ranging from 40 percent to 60%, as stated on the Binanceย Cryptoย exchange Non-Fungibleย Tokenย (NFT) website.
Binanceโs foray into Non-Fungibleย Tokenย (NFT) lending further expands its Non-Fungibleย Tokenย (NFT) offerings, complementing its Non-Fungibleย Tokenย (NFT) marketplace that was introduced in April 2021. Since its launch, Binanceย Cryptoย exchange has continually added features to strengthen user experience, including theย pastย few integration of Ordinals, Bitcoin-based Non-Fungibleย Tokenย (NFTs), alongside existing blockchainย tech support for Ethereumย (ETH), Polygon, and Binanceโs native BNB Chain.
