Binance Launches Non-fungible Token (NFT) Loan Feature
Many crypto service providers have accelerated efforts to expand their offerings and revenue streams and increase their user base.
According to an announcement, the largest crypto exchange by trading volume, Binance, has added a non-fungible token (NFT) loan feature to its services.
The cryptocurrency exchange will allow borrowers to use their NFT as collateral to borrow cryptocurrency without needing to sell assets.
This development could be part of Binance’s expansion plans.
Binance’s newly launched NFT loan product aims to provide a more accessible solution for NFT holders, allowing them to borrow at competitive interest rates and zero gas fees.
In addition, it enables users to borrow Ether without selling their assets.
Initially, the product will be available for holders of profile NFT collections such as Bored Ape Yacht Club (BAYC), Azuki, Mutant Ape Yacht Club (MAYC), and Doodles.
According to Binance, this innovative feature would introduce the benefits of Decentralized Finance to the Binance NFT community.
The exchange also mentioned it would include support for more NFT collections soon.
Furthermore, Binance said it designed this product for users who need quick access to funds but are not ready to sell their prized NFTs.
The feature utilizes a Peer-to-Pool approach where Binance NFT acts as the loan pool, ensuring a fast and secure experience.
The amount of ETH users can borrow would depend on the NFT collection's floor price, which Ninance would calculate using Oracle Pricing.
The Oracle Pricing would use data from various sources, including Oracle service provider Chainlink and NFT marketplace OpenSea.
At press time, the Binance NFT marketplace has over 90 million users globally and offers many valuable
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