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Binance NFT Unveils New Loan Feature for Quick and Easy Access to Liquidity

Binance News Team
2023-05-25 14:21
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Binance NFT has announced the launch of a groundbreaking NFT loan feature, allowing users to borrow cryptocurrency using their NFTs as collateral. The service aims to provide a more accessible solution for NFT holders, offering competitive interest rates, zero gas fees, and the ability to borrow ETH without selling their assets.
Initially available with select high-profile NFT projects such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles, the innovative feature introduces the benefits of decentralized finance (DeFi) to the Binance NFT community. More collections are expected to be added in the near future.
Designed for users who need quick access to funds but don't want to part with their prized NFTs, the feature utilizes a 'Peer to Pool' approach where Binance NFT acts as the loan pool, ensuring a secure experience. The amount of ETH that can be borrowed will depend on the NFT collection's floor price, which is calculated using Binance's Oracle Pricing with data from various sources, including Chainlink and OpenSea.
Binance NFT's marketplace already enjoys the support of over 90 million users worldwide, offering a variety of valuable collectibles, NFT staking, and now, NFT loans. However, potential users are advised to carefully assess the risks associated with NFT loans, as the volatile nature of the market may lead to potential losses.
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