- Binance Crypto exchange is releasing an Non-Fungible Token (NFT) lending feature.
- The new feature intends to give Non-Fungible Token (NFTs) more utility.
- Binance’s new feature directly rivals Blur’s Non-Fungible Token (NFT) lending protocol Blend.
In the fiercely competitive landscape of Non-Fungible Token (NFT) marketplaces in the year, platforms like Blur have set the bar high, pushing other marketplaces such as OpenSea, Magic Eden, and LooksRare to compete for relevance. Now, Binance Crypto exchange looks to intensify the race for dominance with its entry.
Throughout in the year, Binance Crypto exchange has been actively expanding its Non-Fungible Token (NFT) offerings, experimenting with different initiatives, including generative Artificial Intelligence (AI). In a strategic move to set up its presence in this high-octane atmosphere, Binance Crypto exchange has unveiled a feature that directly rivals the leading platforms in the space.
On May 25, Binance Crypto exchange marked its entry into the Non-Fungible Token (NFT) lending space by unveiling a new feature on its platform that allows users to secure loans using Non-Fungible Token (NFTs) as collateral.
The new feature, was known Binance Crypto exchange Non-Fungible Token (NFT) loan, intends to add utility to Non-Fungible Token (NFTs) by allowing people to use their assets to borrow cryptocurrency. The feature comes shortly after Non-Fungible Token (NFT) marketplace giant Blur launched its Non-Fungible Token (NFT) Lending protocol was known Blend earlier in May.
Nonetheless, unlike Blur, Binance Crypto exchange uses a “Peer-to-pool” mechanism where its platform acts as a loan pool.
At the beginning, Binance Crypto exchange will only support Ethereum (ETH) loans and “Blue Chip” Non-Fungible Token (NFT) collections, including Bore Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles. The exchange has shared that it intends to introduce more features in the future that would make Binance Crypto exchange the “one-stop shop for Non-Fungible Token (NFT) trading and DeFi.”
Mayur Kamat, head of product at Binance Crypto exchange, shared in a news release.
Binance Crypto exchange Non-Fungible Token (NFT) loan feature will provide new liquidity options for holders, allowing them to join the market without having to let go of their precious NFTs.”
At the beginning, interest prices are fixed at 3.36 percent per annum; on the other hand, Binance Crypto exchange will increase prices to 11 percent thereafter. Reports 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-Fungible Token (NFTs) were stolen, and 70 percent of them were sold on Blur.
- The cryptocurrency community had blurred reactions to Blur’s new lending protocol Blend. They shared skepticism about the platform’s auctioning process.
Why This Matters
Binance’s new feature could shake up the competition and change how Non-Fungible Token (NFTs). The new Non-Fungible Token (NFT) loan feature evolves Non-Fungible Token (NFTs) from being typical ‘jpegs’ to properties that can be used as collateral. This is a big step forward for Non-Fungible Token (NFTs) and could entice other platforms to follow suit.
Read more about Blend:
Blur’s New Non-Fungible Token (NFT) Lending Protocol Struggles to Blend in.
Read how Bitcoin (BTC) claimed the Second spot in Non-Fungible Token (NFT) sales:
Bitcoin (BTC) Threatens Ethereum (ETH) as It States Second Spot in Non-Fungible Token (NFT) Sales.