Blur, the prominent NFT marketplace, announced its most recent unique solution for the digital collectibles industry on May 1. It stated that ‘Blend’ or Blur Lending is a technique meant to release liquidity for NFTs.
The statement states that “Blend matches users who want to borrow against their non-fungible collateral with whatever lender is willing to offer the most competitive rate, using a sophisticated off-chain offer protocol.”
Blur also says that primitives like these will kick-start the next stage of market expansion.
The Blend loans, according to the release, have fixed rates and never expire. Borrowers can repay at any moment, according to the company. Lenders can exit their positions in the meanwhile by initiating a Dutch auction to find a new lender at a new rate.
The procedure referred to purchasing a home with a mortgage and a small down payment. Nobody would be able to buy a home without this system. Furthermore, it observed that NFTs face a similar issue, adding, “Most buyers today pay the full price of NFTs up front.” Many people wish to invest in a collection, but few can afford to do it all at once. NFT financing is the solution.”
Furthermore, both borrowers and lenders pay no fees. They can, however, be triggered and controlled by BLUR token holders. NFT markets have recently been underwhelming, with sales and volumes declining. According to Nonfungible’s market tracker, daily sales have dropped from approximately 40,000 in October to around 5,000 in mid-April.
In a related development, Sotheby’s auction house has developed an NFT secondary sales platform. On May 1, the business announced that Sotheby’s Metaverse platform customers will be able to “buy and sell remarkable digital works.” The new marketplace will also have a “rotating, curated selection of leading artists hand-picked by Sotheby’s specialists.”
Blur NFT marketplace native tokens have suffered a significant loss today. As a result, according to BeInCrypto, the asset has dropped 10% to $0.614. Furthermore, BLUR has fallen 17% in the last two weeks as NFT-based assets have been hit harder than their crypto counterparts. Finally, BLUR is currently down 88% from its all-time high of just over $5 in February.
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