- Binanceย Cryptoย exchange is releasing an Non-Fungibleย Tokenย (NFT) lending feature.ย
- The new feature intendsย to give Non-Fungibleย Tokenย (NFTs) more utility.
- Binanceโs new feature directly rivals Blurโs Non-Fungibleย Tokenย (NFT) lending protocol Blend.ย
In the fiercely competitive landscape of Non-Fungibleย Tokenย (NFT) marketplaces inย theย year, platforms like Blur have set the bar high, pushing other marketplaces such as OpenSea, Magic Eden, and LooksRare to compete for relevance. Now, Binanceย Cryptoย exchange looks to intensify the race for dominance with its entry.ย
Throughout inย theย year, Binanceย Cryptoย exchange has been actively expanding its Non-Fungibleย Tokenย (NFT) offerings, experimenting with different initiatives, including generative Artificialย Intelligenceย (AI). In a strategic move to setย up its presence in this high-octane atmosphere, Binanceย Cryptoย exchange has unveiled a feature that directly rivals the leading platforms in the space.ย
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More Utility
On May 25, Binanceย Cryptoย exchange marked its entry into the Non-Fungibleย Tokenย (NFT) lending space by unveiling a new feature on its platform that allows users to secure loans using Non-Fungibleย Tokenย (NFTs) as collateral.ย
The new feature, wasย known Binanceย Cryptoย exchange Non-Fungibleย Tokenย (NFT) loan, intendsย to add utility to Non-Fungibleย Tokenย (NFTs) by allowing people to use their assets to borrow cryptocurrency. The feature comes shortly after Non-Fungibleย Tokenย (NFT) marketplace giant Blur launched its Non-Fungibleย Tokenย (NFT) Lending protocol wasย known Blend earlier in May.ย
Nonetheless, unlike Blur, Binanceย Cryptoย exchange uses a โPeer-to-poolโ mechanism where its platform acts as a loan pool.ย
Atย theย beginning, Binanceย Cryptoย exchange will only support Ethereumย (ETH) loans and โBlue Chipโ Non-Fungibleย Tokenย (NFT) collections, including Bore Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles. The exchange has shared that it intendsย to introduce more features in the future that would make Binanceย Cryptoย exchange the โone-stop shop for Non-Fungibleย Tokenย (NFT) trading and DeFi.โย ย
Mayur Kamat, head of product at Binanceย Cryptoย exchange, shared in a newsย release.
Binanceย Cryptoย exchange Non-Fungibleย Tokenย (NFT) loan feature will provide new liquidity options for holders, allowing them toย joinย the market without having to let go of their precious NFTs.โ
Atย theย beginning, interest prices are fixed at 3.36 percent per annum; onย theย otherย hand, Binanceย Cryptoย exchange will increase prices to 11 percent thereafter. Reportsย by the platform, the loan-to-value ratio ranges from 40 percent to 60%
The other side
- In April, Peck Shield reported that $3 Million of Non-Fungibleย Tokenย (NFTs) were stolen, and 70 percent of them were sold on Blur.
- The cryptocurrency community had blurred reactions to Blurโs new lending protocol Blend. They shared skepticism about the platformโs auctioning process.ย
Why This Matters
Binanceโs new feature could shake up the competition and change how Non-Fungibleย Tokenย (NFTs). The new Non-Fungibleย Tokenย (NFT) loan feature evolves Non-Fungibleย Tokenย (NFTs) from being typical โjpegsโ to properties that can be used as collateral. This is a big step forward for Non-Fungibleย Tokenย (NFTs) and could entice other platforms to follow suit.ย
Read more about Blend:
Blurโs New Non-Fungibleย Tokenย (NFT) Lending Protocol Struggles to Blend in.
Read how Bitcoinย (BTC) claimed the Second spot in Non-Fungibleย Tokenย (NFT) sales:ย
Bitcoinย (BTC) Threatens Ethereumย (ETH) as It States Second Spot in Non-Fungibleย Tokenย (NFT) Sales.
