New NFT P2P lending platform sees strong uptake since launch
Blend, a new peer-to-peer lending platform for non-fungible tokens (NFTs), has reportedly seen strong growth in less than two weeks since launching.
The new platform, launched by NFT marketplace Blur at the start of May to boost liquidity for the digital assets, has registered over 3,400 NFT-backed loans valued at more than 55,000 ETH (£80m), according to a report in NFT Plazas.
Blend, which was developed with venture capital firm Paradigm, allows users to utilise non-fungible assets as loan collateral and earn interest by lending ETH backed by the digital tokens.
The specific amounts and interest rates are decided by individual lenders.
Read more: Crypto lender Nexo issues first NFT-backed loan
Since its launch, Blend has become the major lending platform in the NFT space, according to NFT Plazas, commanding approximately 75 per cent of the market share.
Through the Blend platform, collectors can secure ETH loans backed by one of four participating NFT collections – Azuki, Milady Maker, Wrapped CryptoPunks and DeGods.
Read more: P2P lending models being used for NFT-backed loans
Blend has zero fees for lenders and borrowers. It has no expiries, allowing borrowing positions to remain open indefinitely until liquidated, with market-determined interest rates, according to Paradigm.