On May 1, 2023, Blur, a non-fungible tokens (NFT) platform, launched Blend, a peer-to-peer perpetual lending protocol, which will be supporting the collaterals related to NFTs, stated Cointelegraph. It is expected that Paradigm, a venture capital platform has helped to develop this project.
“Blend matches users who want to borrow against their nonfungible collateral with whatever lender is willing to offer the most competitive rate, using a sophisticated off-chain offer protocol,” developers added about the functionality of the project, Cointelegraph highlighted.
Sources revealed that the new protocol will automatically “rolls a borrowing position for as long as some lender is willing to lend that amount against the collateral,” without the need for on-chain transactions, added Cointelegraph.
Furthermore, the new project will include the perpetual, lending protocol which will provide users to increase the expiration time of the loan by default. “If a borrower wants to change the amount they have borrowed or get a better interest rate, they can atomically take out a new loan against the collateral and use the new principal to repay the old loan,” Cointelegraph concluded.
(With insights from Cointelegraph)