Binance Unveils NFT Loan Service
Binance is introducing Binance NFT Loan, a feature allowing holders of select NFT collections to secure Ethereum loans using their NFTs as collateral.
The Deets
- NFT Loan: Lets users leverage Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and Doodles NFTs for ETH loans
- Advantages: Offers competitive interest rates, instant liquidity, zero gas fees, and liquidity protection
- Unique Approach: Employs a "Peer-to-Pool" strategy, with Binance serving as the pool for loans
- Expansion Plan: Binance intends to introduce more options in the future
The Bulk
Binance has announced the launch of its NFT loan feature. This service, dubbed Binance NFT Loan, is designed to enable digital asset holders to obtain Ethereum loans using their NFTs from specific collections as collateral.
The service initially supports Ethereum loans and accepts NFTs from Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles collections. It provides multiple benefits to users, including competitive interest rates, instant liquidity, zero gas fees, and liquidity protection.
Binance has adopted a unique "Peer-to-Pool" approach to this service. Instead of the traditional peer-to-peer system, Binance acts as the pool for loans. This innovative structure promises to enhance the user experience and facilitate smooth transactions.
The crypto giant plans to continue enhancing this service by incorporating additional options in the future, broadening the range of NFT collections that can be used for collateral.
❗Why It Matters
Binance NFT Loan launches with a promotion offering a 70% discount on NFT Loan interest rates, offering 3.36% on the first four collections.
🔜 What's Next?
Keep an eye on Binance's future updates, as they intend to roll out additional options for the NFT Loan feature, expanding the range of NFT collections eligible for collateral.
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