The developers of Blur (BLUR), a platform for NFT creation and trading, announced the launch of Blend, the peer-to-peer perpetual lending protocol for NFTs.
According to Blur’s Twitter account, Blend allows users to borrow and lend NFTs without intermediaries and does not charge any fees for borrowers and lenders.
1/ Introducing Blend: the Peer-to-Peer Perpetual Lending Protocol for NFTs.
Here’s how 👇 pic.twitter.com/uOFC6i3LSq
— Blur (@blur_io) May 1, 2023
According to Blur, Blend is the first protocol to offer continuous lending for NFTs; Borrowers can hold their NFTs indefinitely as long as they pay interest to lenders. Lenders can also withdraw their funds at any time without waiting for the loan to run out.
Blend uses “NFT pools”, which are groups of NFTs that share similar characteristics, such as genre, rarity, or artist, to match borrowers and issuers. Users can deposit and lend their NFTs to a pool or borrow NFTs from a pool by collateral.
According to Blur, Blend’s design aims to be user-friendly for borrowers and secure and flexible for lenders.
Borrowers can choose from different NFT pools and set loan terms such as interest rate, term and collateral rate. By lending to multiple borrowers in different pools, lenders can reduce their risk and earn higher returns than other DeFi protocols.
*Not investment advice.