Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Data obtained from user @beetle via Dune Dashboard indicates that the NFT marketplace Blur has enabled loans totaling 8,820 Ether, approximately $16.37 million, through its perpetual NFT lending protocol Blend, just one day post-launch. On May 1, Blur unveiled Blend as an innovative protocol for using NFTs as collateral for loans, developed in collaboration with venture capital firm Paradigm.
The Azuki, Wrapped CryptoPunks, and Milady NFT collections collectively constitute the largest collateral, with a market value exceeding 8,000 Ether (ETH) pledged. The leading lender on Blur, who has issued 58 loans amounting to 1,180 ETH, is Taiwanese celebrity Jeff Huang, recognized as Machi Big Brother.
A notable personality in Taiwan’s music scene, Machi Big Brother is also a passionate collector of the Bored Ape Yacht Club NFT series. He was among the largest beneficiaries of the Blur token airdrop in February and reportedly sold 1,010 NFTs within 48 hours on February 25 in what was termed the “largest NFT dump ever.”
Related Posts
At the time of this report, there are 846 active loans on the platform, along with eight refinancing events. As a perpetual lending protocol, Blend automatically prolongs the loan duration upon expiry unless either the borrower or lender raises an objection. Loans can also be refinanced or auctioned in a Dutch auction format in response to interest rate fluctuations. Developers of the protocol assert that Blend imposes no borrowing or lending fees, only interest charges.
PSA
Blur fees by protocol:
Blur Marketplace: 0% fees for traders
Blur Lending (Blend): 0% fees for borrowers and lenders
It is important to note that borrowers are still responsible for paying interest on loans based on lender offers. 100% of that interest is allocated to the lender.— Blur (@blur_io) May 2, 2023
In the previous year, NFT lending protocols faced significant challenges as a crypto bear market rendered many collectibles illiquid, with some receiving no bids whatsoever. One protocol, BendDAO, reported having as little as $23,715 available to repay lenders after facilitating over 15,000 ETH in loans.
Magazine: Nonfungible Tokens, The Quick Guide
