Blur’s Blend Protocol: Crossing Milestones in Loan Services
(26 May 2023, 17:20 PM IST)
What is Blur’s New NFT Lending Protocol, Blend?
How Blur’s Lending Protocol Work?
Blend loans are a type of lending mechanism that operates on a peer-to-peer basis without the involvement of intermediaries or oracles to determine collateralization ratios. While there is some theoretical understanding of Blend loans as “fixed rate” with no expiry, in practice, they function more like “variable rate” loans with variable expiry.
In Blend lending, lenders have the flexibility to exit their leading positions at any time by initiating a Dutch auction. A Dutch auction is a type of auction where the price of the loan is gradually reduced until a buyer is found or a predetermined minimum price is reached. By using this mechanism, lenders can sell off their loan positions and exit the Blend lending platform.
Blur’s Blend protocol Achievement ( 170,000 ETH loans in just 22 day):
Blur’s Blend protocol has achieved remarkable success in providing 170,000 ETH loans in just 22 days.
The peer-to-peer perpetual non-fungible lending protocol, which primarily focuses on NFTs, has witnessed exponential growth since its inception, with the total loan volume reaching an impressive 169,900 ETH (equivalent to $308 million) within this short timeframe. This represents a staggering growth rate of nearly 4000%, considering the protocol’s initial loan volume of 4,200 ETH on the first day.
Notably, Blend has emerged as the dominant player in the NFT lending market, accounting for a substantial 82% of the borrow volume.
This achievement has surpassed other notable NFT lending protocols like X2Y2, NFTfi, Paraspace, Bend, and Arcade. With an overwhelming share in the market, Blend has solidified its position as the go-to platform for individuals seeking NFT-backed loans.
Blend, an abbreviation for Blur Lending, was launched on May 1 by the NFT marketplace Blur. The protocol allows borrowers to utilize their NFT assets as collateral in order to secure Ether loans. One notable aspect of Blend is that it does not charge any fees for borrowers or lenders, and the loans themselves do not have an expiration date. These features contribute to the platform’s attractiveness and user-friendly nature.
The exceptional performance of Blend has not only boosted its own success but also positively impacted Blur’s overall ecosystem. Blur’s total value locked (TVL) experienced a significant surge, reaching a peak of $147.5 million on May 23. Notably, NFTs within the Blend protocol contribute to 17% of Blur’s TVL, further solidifying the protocol’s importance within the broader Blur ecosystem.
In addition to the existing NFT collections supported by Blend, including Azuki, CryptoPunks, and Milady Maker, the protocol has expanded its portfolio to encompass DeGods, Bored Ape Yacht Club (BAYC), and Mutant Ape Yacht Club (MAYC). Among these collections, Azuki stands out as the most preferred asset on the Blend protocol, generating a significant loan volume of 70,031 ETH from nearly 6,500 loans.
Exciting news came from Blur as well, with the recent announcement that Blend will soon support Clone X, a collection consisting of 20,000 3D avatars that was launched in 2021. This expansion signifies Blur’s commitment to continuously enhance its offerings and cater to a diverse range of NFT enthusiasts.
As Blend continues to dominate the NFT lending market, Blur is effectively establishing itself as a formidable entity within the NFT space. The protocol’s impressive growth, combined with its comprehensive support for various NFT collections, demonstrates Blur’s dedication to providing innovative and reliable lending solutions in the ever-evolving world of non-fungible tokens.
Conclusion:
Blur’s Blend protocol has experienced remarkable growth in the NFT lending market since its launch. In just 22 days, the protocol facilitated nearly 170,000 ETH loans, with a total loan volume of $308 million. This represents an impressive growth rate of nearly 4000% compared to the initial recorded volume.
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