Binance Launches NFT Lending Platform

Binance launched another new product for NFT this Thursday (25th). With the launch of Ordinals trading, the exchange will now allow customers to use NFTs as collateral for loans. This way, the value of the NFT will define the limit on which users can borrow crypto.

This measure is mainly aimed at traders, who will be able to leverage themselves to provide real assurance. This should reduce interest rates and leverage costs, and reduce the risk of losing collateral value (NFT).

Binance Launches NFT Loans

The NFT lending trend is quickly gaining popularity in the cryptocurrency market. After all, this possibility offers users a new way to diversify their portfolios and maximize their investment potential.

According to Binance, users will be able to stake NFTs from series such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles. These four can now take out loans on the platform immediately.

This diverse selection gives users the flexibility to choose securities that suit their investment preferences and strategies.

According to the official website, the annual interest rate for NFT loans is 7.91%. Loan-to-value ratios offered range from 40% to 60%, ensuring a fair balance between collateral and borrowed funds.

Additionally, Binance is waiving gas fees for all transactions related to the lending process. In other words, users do not need to pay handling fees to transfer NFT, which is more attractive to users.

keep an eye on the game

This significant development follows the recent launch of the Blend NFT platform, Blur’s NFT lending protocol. Blend allows lenders to set their own interest rates and loan rates, giving market participants much-needed flexibility.

Additionally, the introduction of NFT loans on Binance provides a win-win situation for both borrowers and lenders.

“Owners can borrow relatively illiquid non-fungible tokens (NFTs) for instant cryptocurrency or cash funding. Borrowers, on the other hand, can earn interest without owning NFTs,” Binance said.

Additionally, Binance has been making strategic moves to outperform its competitors and solidify its dominance in the NFT market. Therefore, contained lending aims to take some of the liquidity from its competitors and bring it to Binance.

Source of information: Compiled from CRIPTOFACIL by 0x Information.Copyright belongs to the author Luciano Rocha, without permission, may not be reproduced

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