The NFT trading market Blur has created a lot of trading volume and liquidity under the mechanism of granting liquidity airdrop rewards, which has both advantages and disadvantages for users who make market-making airdrops. Blur also made Maji’s eldest brother Huang Licheng claim to withdraw from the NFT market. Yesterday, Blur announced the launch of Blend, a sustainable lending protocol, and introduced a series of fee-free policies. However, this also made netizens ask: How do you make money?

Blur shouts: No handling fees for NFT transactions and loans

Blur 5/2 stated that Blur’s protocol fees are all based on handling fees. Including Blur’s NFT market and Blur’s lending protocol Blend.

It also reminds that the interest on the loan part must still be paid, but all the interest will be given to the borrower (lender).

PSA

Blur fees by protocol:

Blur Marketplace: 0% fees for traders

Blur Lending (Blend): 0% fees for borrowers and lenders

Note that borrowers still pay interest on loans based on what lenders offer. 100% of that goes to the lender.

— Blur (@blur_io) May 2, 2023

Blur does not charge any fees, so how can the protocol make money?

"Then how do you make money?" asked a netizen. After all, team operations also require funds.

Blur answers, we don’t charge any fees. Holders of the BLUR token can change key parameters of the NFT market and lending agreement after 180 days, including fee parameters. Blur means that the BLUR token is used for governance purposes and can allow Blur to collect fees through resolution in the future.

In addition to the "statement" given by Blur, we must also consider that zero handling fees are a weapon for Blur to compete with the market. If the fee structure is changed, it may be detrimental to product competition. Blur has also cooperated with market maker Wintermute, selling tokens in the secondary market, which of course also generates financial resources; Blur may also participate in the lending market itself, collecting interest, etc.

(Extended thinking: In the past, some people also discussed that Uniswap may lose its competitiveness if it starts charging fees)

In the traditional world, free products are mostly accompanied by advertisements, but in the Web3 world, the cost of free products will also be subsidized through token circulation and financing.

Blur does not charge any fees. BLUR holders can change key parameters of the marketplace and lending protocol after 180 days, including fee parameters.

— Blur (@blur_io) May 2, 2023

In this article, Blur claimed that NFT transactions and loans have zero handling fees. Netizens asked: How do you make money? First appeared in Chain News ABMedia.