Blur introduces NFT perpetual lending protocol


On May 1st, the Non-Fungible Token Marketplace Blurs launched Blend, a peer-to-peer perpetual loan protocol that supports NFT collateral. Developed with the venture capital firm paradigm, the developers cite Blend’s reasoning as a means to “scale financing”.

Blend has neither an oracle dependency nor an expiry, allowing borrowing positions to be open indefinitely until they expire. The developers also claim that the protocol will charge borrowers and lenders zero fees:

“Matches users who want to borrow against their non-replaceable collateral with whichever lender is willing to offer the most competitive rate using a sophisticated off-chain offer protocol.”

By design, Blend automatically “rolls the borrowing position as long as some lender is willing to lend that amount against collateral.” For this, no on-chain transactions are required until one party decides to exit the position or the interest rate changes.

As a permanent lending protocol, the borrower and the lender extend the loan termination time by a predetermined period in case of default. If a lender wishes to terminate the loan against the wishes of the borrower, an interest rate “Dutch auction” is held to refinance when the borrower has not repaid the loan at termination. Auctions start at 0% refinance interest with a continuously increasing rate.

“In Blend, an NFT can be liquidated whenever a lender starts a refinance auction and no one is willing to borrow at any interest rate.”

That said, the developers explained that borrowers can repay loans on Blend at any time. He wrote, “If a borrower wants to change the amount they’re borrowing or get a better interest rate, they can take out a new loan against the collateral at atomic and use the new principal to repay the old loan.” Can be used.”

Launched in the third quarter of 2022, Blur rewards users with a “care package”. Redeemable for BLUR tokens Starting from 14th Feb to increase trading activity. platform since across In terms of trading volume, OpenC.

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