The world’s largest crypto exchange by trading volume, Binance, has released a new non-fungible token (NFT) lending feature.
According to a new Binance announcement, the platform offers zero gas fees and the ability to borrow Ethereum (ETH) without having to sell any assets.
The lending function goals to cater to those who want quick access to funds but don’t want to part with their NFTs. It uses what Binance calls a “Peer to Pool” mechanism, where Binance NFT acts as a lending pool, and the amount of ETH users can borrow depends on the bottom price of their NFTs. Data for the system comes from multiple sources, including oracle service Chainlink (LINK) and NFT marketplace OpenSea.
At the time of writing, Binance’s NFT lending feature supports only four known collections, but more are expected soon.
says binance,
“Initially available on select high profile NFT projects such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki and Doodles, the innovative feature introduces the benefits of decentralized finance (DeFi) to the Binance NFT community . It is expected that more collections will be added in the near future.”
Binance launched its NFT platform in June 2021 and has been steadily adding features ever since. In March, the crypto exchange launched a beta version of an artificial intelligence-based NFT image generator called “Bicasso”.
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Featured image: Shutterstock/Juan Manuel Rodriguez/WindAwake
