New NFT lending platform Blend is set to offer perpetual loans for NFT holders with access to liquidity and without the risk of losing their NFTs. The Blur platform’s new borrowing and lending protocol connects lenders with borrowers, offering set amounts and rates that accrue interest until the balance is repaid, rather than the short expiration dates associated with existing NFT-lending protocols.

Lenders will be able to prepare loan offers to NFT collections, receiving a yield as well as the ability to liquidate their loan through a 30-hour auction. Borrowers have a 24-hour period to pay back their loan after an auction is triggered; failure to do so would result in an increased interest rate, rising to a potential annual percentage yield of 1,000%. The protocol was created by the Blur team in collaboration with Dan Robinson and Transmissions11 from Paradigm.

NFT holders often struggle to access liquidity post-purchase, but the new platform is expected to enable NFT holders to take out loans against their assets, offering access to funds and increasing opportunities for lenders to generate a yield on their assets. The platform is also expected to benefit NFT collections, reducing the need for NFT holders to liquidate their assets and, in turn, reducing selling pressure for existing collections while increasing buyers for new ones.

However, as with any financial agreement, there are risks associated with Blend for both borrowers and lenders. For borrowers, the main risk is that interest accrued on the loan could exceed the value of the NFT, leading to a loss of the asset if no action is taken. For lenders, there is a risk that the borrower will not repay the loan, and that liquidating the NFT will not cover the balance of the loan.

Despite the risks, the new platform is set to be a game changer for the NFT market, magnifying access to liquidity for NFT holders with a protocol that connects lenders with borrowers. The easy access to funds for NFT collectors creates another reason to own valuable NFTs, as they will have access to better rates due to their value and prominence.

New NFT lending platform Blend is set to offer perpetual loans for NFT holders with access to liquidity and without the risk of losing their NFTs. The Blur platform’s new borrowing and lending protocol connects lenders with borrowers, offering set amounts and rates that accrue interest until the balance is repaid, rather than the short expiration dates associated with existing NFT-lending protocols.

Lenders will be able to prepare loan offers to NFT collections, receiving a yield as well as the ability to liquidate their loan through a 30-hour auction. Borrowers have a 24-hour period to pay back their loan after an auction is triggered; failure to do so would result in an increased interest rate, rising to a potential annual percentage yield of 1,000%. The protocol was created by the Blur team in collaboration with Dan Robinson and Transmissions11 from Paradigm.

NFT holders often struggle to access liquidity post-purchase, but the new platform is expected to enable NFT holders to take out loans against their assets, offering access to funds and increasing opportunities for lenders to generate a yield on their assets. The platform is also expected to benefit NFT collections, reducing the need for NFT holders to liquidate their assets and, in turn, reducing selling pressure for existing collections while increasing buyers for new ones.

However, as with any financial agreement, there are risks associated with Blend for both borrowers and lenders. For borrowers, the main risk is that interest accrued on the loan could exceed the value of the NFT, leading to a loss of the asset if no action is taken. For lenders, there is a risk that the borrower will not repay the loan, and that liquidating the NFT will not cover the balance of the loan.

Despite the risks, the new platform is set to be a game changer for the NFT market, magnifying access to liquidity for NFT holders with a protocol that connects lenders with borrowers. The easy access to funds for NFT collectors creates another reason to own valuable NFTs, as they will have access to better rates due to their value and prominence.