NFT Blur Market Launches Timeless Borrowing Protocol, Blend

Blur launched Blend, an indefinitely peer-to-peer lending protocol that supports NFT guarantees. (photo: twitter @blur_io)

JAKARTA - On May 1, the Blur non-fungible token (NFT) marketplace launched Blend, a indefinitely peer-to-peer lending protocol that supports NFT guarantees. Developed with venture capital firm Paradigm, the developer said that Blend was designed as a way to "generate on a large scale."

Blend does not depend on the oracle or expiration date, so the loan position can be opened unlimitedly until it is ended. The developer also claims that this protocol will not charge borrowers and lenders.

1/ Introducing Blend: the Peer-to-Peer Perpetual Lending Protocol for NFTs.Built in collaboration with @danrobinson and @transmissions11 at @paradigm, Blend enables 10x higher yield opportunities than current DeFi protocols and unlocks greater liquidity for NFTs.Here’s how 👇 pic.twitter.com/uOFC6i3LSq

— Blur (@blur_io) May 1, 2023

1/Introduding Blend: the Peak-to-Peer Perpetual Lending Protocol for NFTs.Built in collaboration with @danrobinson and @transmissions11 at @paradigm, Blend enable 10x higher yield opportunities than current DeFi protocols and unlocks greater liquidity for NFTs.Heres how pic.twitter.com/uOFC6i3LSq

"Blend matches users who want to borrow with their non-fungible guarantees with lenders offering the most competitive interest rates, using state-of-the-art off-chain bid protocols," said Blur.

Automatically, Blend will "add loan positions as long as there are lenders willing to provide certain amounts of guarantees." For this reason, no on-chain transactions are needed unless one of the parties decides to leave the position or there is a change in interest rates.

Using an indefinitely borrowing protocol, borrowers and lenders extend the expiration date of the loan by default. If the lender wants to terminate the loan against the borrower's wishes, a "Dutch auction" interest rate for the transfer of the loan will be held when the borrower has not paid off the debt at the time of expiration. The auction starts with a 0% interest rate and gradually increases.

"In Blend, an NFT can be liquidated whenever a lender triggers a transfer auction and no one is willing to take over debt at any interest rate," added Blur.

However, the developer explains that borrowers can repay the loan at any time at Blend. "If borrowers want to change the amount borrowed or get a better interest rate, they can atomically take a new loan on collateral and use new loan funds to pay off old loans," they wrote.

Blur launched in the third quarter of 2022 and has provided a "care package" that can be exchanged for BLUR tokens since February 14 to increase trading activity. This platform has surpassed OpenSea in terms of trading volume.