Blur, a new NFT lending system, has lately made headlines in the crypto industry. Blur just unveiled the Blend collateralized lending protocol, which allows for a buy now, pay later way to purchase NFTs. Members of the community reacted differently. Some see it as a significant a...
Blur, a new NFT lending system, has lately made headlines in the crypto industry. Blur just unveiled the Blend collateralized lending protocol, which allows for a buy now, pay later way to purchase NFTs. Members of the community reacted differently. Some see it as a significant advancement for the space, while others have called on the United States Securities and Exchange Commission (SEC) to protect users from such products.
Blur’s new protocol gets the crypto community talking
The platform released Blend, a peer-to-peer perpetual lending protocol created with the assistance of venture capital firm Paradigm, on May 1. The protocol accepts NFT collateral, and the team believes it will charge no fees to lenders or borrowers.
A community member welcomed Blur’s new location, calling it “massive for the space” and more efficient. They posted on Twitter:
Meanwhile, another Twitter user believes that the new OpenSea competitor development is a good diversion from the “overall negative sentiment” in the NFT space. The community member may be referring to the decreasing number of NFT buyers in April. According to statistics from the analytics website NFTGo, sellers dominated the NFT market last month.
While some emphasized the benefits of NFT lending, others disapproved of it. A member of the community emphasized the possibility of defaulting on the loan and losing much more money. In the meantime, a collector of NFTs utilized the opportunity to deliver a lesson on NFTs.
Jesse Hynes, an attorney for Web3, tagged the SEC’s Twitter account and stated that the commission should be safeguarding investors from such conduct. Hynes states that it is “extremely dangerous.”
Blur has positioned itself in the NFT market, prompting OpenSea to take action in what the community refers to informally as the “NFT marketplace wars.” OpenSea instituted 0% fees on February 18 to regain users from the incoming rival. OpenSea has also recently debuted a sophisticated NFT marketplace aggregator in an additional attempt to upset the boat.
What is the Blend lending protocol?
Blur launched a peer-to-peer NFT lending protocol on Monday. Blend, an abbreviation for Blur Lending, is a platform designed to enable traders to maximize NFT liquidity by permitting token purchasers to provide collateral. This will allow buyers who were previously priced out of expensive collections, such as Bored Ape Yacht Club and CryptoPunk NFTs, to access the ecosystem.
In the same way that homebuyers make a down payment and then pay a mortgage, Blend will enable collectors to apply the same principles to NFT markets, allowing them to put up a percentage of the total NFT price and finance the remaining balance.
The entity posted a Twitter thread detailing the product and describing how it will aid lenders and borrowers seeking to enter the market by creating new opportunities.
The NFT platform stated that the product was developed in collaboration with Dan Robinson, head of research at venture capital firm Paradigm and an investor in decentralized exchange (DEX) Uniswap version (v)3, and Transmissions, a pseudonymous research associate who previously contributed to the development of the market protocol Seaport. Paradigm is Blur’s largest investor.
According to the thread, Blend will not charge merchants or lenders any fees, further integrating the Blur brand into the world of decentralized finance (DeFi).
Blend joins the NFT platform near the end of Season 2’s airdrop period of $300 million worth of its native BLUR token. According to Dune Analytics statistics, while Blur has been the dominant NFT marketplace for several months, aggregate NFT trade volumes have decreased in recent weeks.