{"id":14330,"date":"2023-05-26T17:25:09","date_gmt":"2023-05-26T21:25:09","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/binance-launches-non-fungible-token-nft-loan-feature\/"},"modified":"2023-05-26T17:25:10","modified_gmt":"2023-05-26T21:25:10","slug":"binance-launches-non-fungible-token-nft-loan-feature","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=14330","title":{"rendered":"Binance Launches Non-fungible Token (NFT) Loan Feature"},"content":{"rendered":"
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Many crypto service providers have accelerated efforts to expand their offerings and revenue streams and increase their user base.\u00a0<\/p>\n

According to an announcement<\/u>, the largest crypto exchange by trading volume, Binance, has added a non-fungible token (NFT) loan feature to its services.<\/p>\n

The cryptocurrency exchange will allow borrowers to use their NFT as collateral to borrow cryptocurrency without needing to sell assets.\u00a0<\/p>\n

This development could be part of Binance\u2019s expansion plans.<\/p>\n

NFT Collateralized Cryptocurrency Borrowing With Zero Gas Fees<\/h2>\n

Binance\u2019s 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.\u00a0<\/p>\n

In addition, it enables users to borrow Ether without selling their assets.\u00a0<\/p>\n

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.\u00a0<\/p>\n

According to Binance, this innovative feature would introduce the benefits of Decentralized Finance to the Binance NFT community.<\/p>\n

\u00a0The exchange also mentioned it would include support for more NFT collections soon.<\/p>\n

Furthermore, Binance said it designed this product for users who need quick access to funds but are not ready to sell their prized NFTs.\u00a0<\/p>\n

The feature utilizes a Peer-to-Pool approach where Binance NFT acts as the loan pool, ensuring a fast and secure experience.<\/p>\n

The amount of ETH users can borrow would depend on the NFT collection’s floor price, which Ninance would calculate using Oracle Pricing.\u00a0<\/p>\n

The Oracle Pricing would use data from various sources, including Oracle service provider Chainlink and NFT marketplace OpenSea.<\/p>\n

Risks Associated With NFT Loans<\/h2>\n

At press time, the Binance NFT marketplace has over 90 million users globally and offers many valuable collectibles.<\/p>\n

Since Binance launched its NFT platform in June 2021, the exchange has steadily expanded its features.<\/p>\n

In March, Binance unveiled<\/u><\/a> the Beta version of an AI-based NFT image generator called “Bicasso.”\u00a0<\/p>\n

Although Binance has a vast experience and user base in NFT staking and other DeFi-related offerings, it acknowledged the risks associated with NFT loans.<\/p>\n

The NFT market is highly volatile and may lead to potential losses when asset values decline.\u00a0<\/p>\n

Hence, the exchange advised users to assess the risks involved with this new service.<\/p>\n

Meanwhile, the NFT market cap has continued to grow as it sits at $3,500,191,542.48 at press time.\u00a0<\/p>\n

The market\u2019s sales volume has also reached $32, 631,070.55 but shows a decline of 7.84% in 24 hours.\u00a0<\/p>\n

NFTs total sales stand at 59,060, down by 19.98% in 24 hours, with MutantApeYachtClub still leading the pack in all metrics except the 24-hour sale volume.<\/p>\n<\/p><\/div>\n