NFT
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NFT trading platform Binance has introduced a new feature that allows users to borrow Ethereum cryptocurrency using NFT as collateral.
Currently, the Binance NFT Marketplace supports Ether (ETH) borrowing in exchange for blue-chip NFTs, including Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles. In the future, the number of collections and cryptocurrencies will be expanded.
This means that Binance NFT users will not have to sell their tokens in case of an urgent need for money.
NFT loans will add a new form of liquidity for NFT holders, allowing them to participate in the market without giving up their precious tokens,” said Mayur Kamat, head of product at Binance.
The current interest rate on NFT loans is 7.91% per annum, and the loan-to-value ratio ranges from 40% to 60%. There will be no gas fees or Ethereum transaction fees.
The NFT lending feature on Binance came after NFT market giant Blur launched its own NFT lending protocol called Blend in early May.
Blend allows lenders to set their own interest rates and loan-to-value ratios.
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