Nonfungible token (NFT) marketplace Blur has unveiled a peer-to-peer perpetual lending protocol for NFTs.
On May 1, popular NFT marketplace Blur unveiled its lasted innovative service for the digital collectibles sector. ‘Blend’ or Blur Lending is a system designed to unlock liquidity for NFTs, it stated.
According to the announcement, “Blend matches users who want to borrow against their non-fungible collateral with whatever lender is willing to offer the most competitive rate, using a sophisticated off-chain offer protocol.”
Blur also claims that NFT-native primitives such as this will jump-start the next stage of market growth.
According to the announcement, the Blend loans have fixed rates and never expire. It added that borrowers can repay at any time. Meanwhile, lenders can exit their positions by triggering a Dutch auction to find a new lender at a new rate.
The protocol referred to buying a house through a mortgage with a nominal deposit. Without this system, nobody would be able to afford a property. Additionally, NFTs face a similar problem, it observed, adding:
“Most buyers today pay the full price of NFTs up front. Many may want to buy into a collection, but very few can afford to pay it all at once. The solution is NFT lending.”
Moreover, there are zero fees for borrowers and lenders. However, they can be activated and controlled by BLUR token holders.
NFT markets have been lackluster recently, with sales and volumes slumping. Nonfungible’s market tracker shows that daily sales have plunged from around 40,000 in October to roughly 5,000 in mid-April.
In a related development, Sotheby’s auction house has launched an NFT marketplace for secondary sales. On May 1, the company said that users of its Sotheby’s Metaverse platform would be able to “buy and sell remarkable digital works.” Furthermore, the new marketplace will feature a “rotating, curated selection of leading artists hand-picked by Sotheby’s specialists.”
BLUR Price Drops
Blur NFT marketplace native tokens have taken a big hit today. As a result, the asset has tanked 10% in a fall to $0.614, according to BeInCrypto.
Additionally, BLUR has dropped 17% over the past two weeks as NFT-based assets get hit harder than their crypto peers.
Finally, BLUR is currently trading down 88% from its February all-time high of just over $5.
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