Binance Launching NFT Loan Feature
The Binance marketplace is launching a non-fungible token (NFT) loan feature where digital asset holders can secure Ethereum (ETH) loans by using their NFTs as collateral. The new service, called Binance NFT Loan, will allow people to use blue-chip NFTs to borrow crypto, introducing the benefits of decentralized finance to the Binance NFT community.
According to the platform, the tool offers competitive interest rates, instant liquidity, zero gas fees, and liquidity protection. It uses a “Peer-to-Pool” approach where Binance acts as the pool for loans.
The feature, launching on Friday, will initially support Ethereum loans only and NFTs from Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles collections. The platform plans to roll out new options in the future.
Mayur Kamat, head of product at Binance, said in a press release that the new feature would provide new liquidity options for holders and allow them to participate in the market without having to let go of their precious NFTs.
Binance has been expanding its NFT offerings to stay competitive and embrace trends seen across the crypto industry. In March, the platform launched a beta for “Bicasso,” an artificial intelligence (AI)-powered NFT generator. In May, it announced that it would soon add support for Bitcoin NFTs.
With the Binance NFT Loan, users can now use their NFTs as collateral to borrow ETH. The platform expects this service to be popular among collectors, who can now hold on to their NFTs without the need to sell them to obtain liquidity.
Users can borrow cryptocurrencies by depositing NFTs, and once they repay the loan, the NFTs will be returned to them. If the user fails to repay the loan, Binance will keep the NFTs as collateral.
The Binance NFT Loan feature marks another important step towards the integration of Web3 into traditional finance, allowing NFT holders to leverage their assets in novel ways.
Binance continues to lead the way in NFT offerings to remain competitive and keep up with the changing crypto landscape. With features such as Binance NFT Loan, the platform is providing the tools and opportunities for users to take full advantage of the NFT ecosystem.
For more information on the Binance NFT Loan feature and other developments in the crypto industry, visit our website.
According to https://www.coindesk.com/web3/2023/05/25/binance-launching-nft-loan-feature/
The material in this article is written on the basis of another article.