- Only Ethereum is accepted against NFT at this time
- The lending rate is 7.91% p.a.
The Binance cryptocurrency exchange is launching an NFT lending feature on its trading floor. Users will now be able to obtain cryptocurrencies using NFT as collateral.
Currently, the feature only supports ETH bailed by NFTs such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki and Doodles.
However, Binance plans to expand its list of crypto-assets and available collections in the future.
The lending rate is 7.91% APR, and the ratio of credit to token value varies from 40% to 60%.. It is important to note that there is no transaction fee in ETH.
The credit feature on Binance NFT comes after Blur announced the launch of a new project that will “revolutionize the NFT market.”
This is the Blend credit platform. The name is an abbreviation for Blur Lending.
The new project will allow traders to maximize NFT liquidity by allowing buyers to use collateral to buy tokens.
The Binance exchange introduced its NFT platform in April 2021, launching in June of that year.
A few weeks ago, the company announced that it would add support for Bitcoin Ordinals to its proprietary NFT marketplace.
According to the press release, this will happen at the end of this month. And in March 2023, the Binance NFT platform added support for projects on the Polygon network.
Thus, it became the third blockchain with which the marketplace works (besides BNB Smart Chain and Ethereum).