On Monday, May 1, the leading NFT Marketplace Blur announced a new lending protocol for non-fungible tokens (NFTs).  The platform, which goes by the name Blend, is designed to enable traders to increase the amount of NFT liquidity available to them by enabling buyers to provide collateral for their token transactions. Potential consumers who were previously left out of pricey NFT collections such as Bored Ape Yacht Club, Loot & CryptoPunk NFTs will now be able to participate in the ecosystem as a result of this development.

According to the white paper for the project, the protocol permits perpetual lending. This means that loans do not have a predetermined date when they must be repaid, thereby “allowing borrowing positions to remain open indefinitely until liquidated, with market-determined interest rates.”

As per the inner workings of the protocol, borrowers have the ability to repay their loans at any moment, while lenders have the option to pull out their positions by initiating a “Dutch auction to find a new lender at a new rate”. In the event that the auction is not successful, the borrower’s assets will be liquidated, and the lender will assume ownership of the collateral.

(By Pratik Bhuyan)