NFT
According to data provided by user @beetle of Dune Dashboard, the nonfungible tokens (NFT) marketplace Blur facilitated 8,820 Ether (ETH), or approximately $16.37 million, in loans through the NFT perpetual lending protocol Blend one day after launch . On May 1, Blur introduced Blend as a new protocol for pledging NFTs for loans, which was developed in partnership with venture capital firm Paradigm.
Together, the Azuki, Wrapped CryptoPunks, and Milady NFT collections represent the largest collateral, with a committed market value of over 8,000 ETH. The top Blur lender, who issued 58 loans worth 1,180 ETH, is Taiwanese celebrity Jeff Huang, also known as Matchi Big Brother.
A prominent figure in Taiwan’s music industry, Matchi Big Brother is also an avid collector of the Bored Ape Yacht Club (BAYC) NFT series. Machi was one of the largest recipients of the Blur token airdrop in February, reportedly selling 1,010 NFTs within 48 hours on February 25 in the largest-ever NFT dump.
There are currently 846 active loans on the platform at the time of publication, with eight refinancing events. As a perpetual lending protocol, Blend automatically extends the term of loans at maturity, assuming that neither the borrowing nor the lending party objects. Loans can also be refinanced or held on Dutch Auction in case of interest rate changes. Protocol developers claim that Blend does not charge any borrowing or lending fees, only interest.
PSA
Fade rates per protocol:
Blur Marketplace: 0% fees for merchants
Blur Lending (Blend): 0% fee for borrowers and lenders
Note that borrowers still pay interest on loans based on what lenders offer. 100% of that goes to the lender.
— Blur (@blur_io) May 2, 2023
Last year, NFT lending protocols went haywire after a crypto bear market caused many collectibles to become illiquid, some of which didn’t bid at all. One protocol, Bend DAO, at the time had only $23,715 to pay back lenders after facilitating more than 15,000 ETH in loans.
Journal: Non-fungible Tokens, The Quick Start Guide