Binance, the popular NFT marketplace, has introduced a new feature that allows users to borrow cryptocurrency by using their valuable NFTs as collateral. This means you can now secure a loan by leveraging NFTs like Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and Doodles. Binance aims to become a leading provider of NFT loans and compete with other platforms like Blur.
https://twitter.com/TheBinanceNFT/status/1661713696765165572?s=20
To attract users, Binance is offering a special promotion with up to a 70% discount on the interest rates for NFT loans during the initial launch period. The interest rate is currently set at 3.36% per year, and the loan-to-value ratios range from 40% to 60%. The best part is that users won't have to pay any gas fees or transaction charges on the Ethereum network for these transactions.
Binance initially entered the NFT market in April 2021 and officially launched its NFT marketplace in June. They have plans to support Bitcoin NFTs called Ordinals, in addition to Ethereum, Polygon, and BNB Chain.
By venturing into the NFT lending space and expanding its services, Binance is positioning itself as a strong competitor to established players like Blend and Blur. With its growing ecosystem, Binance has the potential to become a major player in the NFT loan market, as long as they continue to innovate and offer attractive terms for users.
By Mahesh from Modern Crypto World
