Non-fungible token (NFT) marketplace Blur has unveiled the debut of its new offering: Blend, a peer-to-peer (P2P) NFT lending protocol. The primary objective of Blend is to help traders maximize their NFT liquidity by enabling buyers to offer collateral for their token purchases. This will allow new buyers who could not afford to buy expensive collections like Bored Ape Yacht Club and CryptoPunk NFTs to enter the market.
Access DeFi loans for your NFTs
Blend operates on the same principles as homebuying – where buyers put down a down payment and then finance the remaining balance through a mortgage. Similarly, collectors can apply the same approach to NFT markets using Blend, putting down a portion of the full NFT price and financing the remaining balance.
Blur developed Blend in collaboration with Dan Robinson, the head of research at venture capital firm Paradigm, who is also an investor in decentralized exchange (DEX) Uniswap version (v)3, and pseudonymous research associate Transmissions. Paradigm is also the lead investor in Blur.
According to the Blend whitepaper, the product is a versatile and unrestricted floating-rate lending protocol that can accommodate any collateral with no Oracle dependencies. It permits the market to determine the interest rates and loan-to-value ratios.
$BLUR Airdrops keep on giving
As the Season 2 airdrop period of $300 million worth of its native BLUR token nears its end, Blur has introduced the Blend platform. While Blur has maintained its position as the leading NFT marketplace for several months, Dune Analytics data shows that aggregate NFT trading volumes have decreased in recent weeks.
To boost trading volumes and make the NFT market more accessible, Blend has been designed to enable new buyers to enter the market more easily. With Blend, traders can put up a percentage of the full NFT price and finance the rest of the balance. This feature allows them to buy blue-chip NFTs with a smaller upfront payment, similar to a down payment on a house.
As per the Blend white paper, the platform will be completely feeless for both lenders and traders, further cementing Blur’s position in the realm of decentralized finance (DeFi). This approach allows lenders and traders to enhance their NFT liquidity while also reducing their expenses.
“Every trillion dollar market relies on financialization to scale,” said Blur in a tweet. “Many may want to buy into a collection, but very few can afford to pay it all at once. The solution is NFT lending.”
The introduction of Blend marks a crucial achievement for Blur, as it broadens its product range and consolidates its dominant position as the premier NFT marketplace. Additionally, it signifies a significant advancement for the NFT market, as it enables a more feasible path for novice purchasers to participate in the market.