coinspress.com
Blur has revealed a new lending protocol for non-fungible tokens (NFTs) named Blend, which has been developed in partnership with Paradigm's Dan Robinson and Transmissions11.
This protocol enables perpetual lending, meaning that loans have no specified end date, allowing borrowing positions to stay open until liquidated, with interest rates determined by the market.
Blend loans have fixed rates by default, and borrowers can repay at any time, with lenders able to exit their positions through a Dutch auction to locate a new lender at a new rate.
In the event of a failed auction, the borrower is liquidated, and the lender gains possession of the collateral.
The NFT lending space has seen the emergence of platforms like BendDAO, and PaprMeme, which is supported by $3 million in funding from Coinbase’s venture arm.
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Blur had a successful month in April, with 48% of monthly volume among NFT marketplaces, surpassing OpenSea, which drew $596.3 million in volume.
This follows the launch of Blur, which gained market share through airdrops, low fees, and token incentives, and OpenSea’s subsequent launch of OpenSea Pro.