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According to Dune Dashboard user @beetle, Blur’s non-fungible token (NFT) marketplace provided loans worth 8,820 Ether (ETH), or approximately $16.37 million, through its Blend NFT perpetual lending protocol a day after launch. On May 1, Blur introduced Blend as a new protocol for NFT collateral for loans, which was developed in collaboration with venture capital firm Paradigm.
Together, the Azuki, Wrapped CryptoPunks, and Milady NFT collections represent the largest collateral with over 8,000 ETH in market value. Blur’s biggest lender, with 58 loans totaling 1,180 ETH, is Taiwanese celebrity Jeff Huang, aka Big Brother Matches.
A well-known figure in Taiwan’s music industry, Big Brother Matchi is also an avid collector of the Bored Ape Yacht Club (BAYC) NFT series. Machi was one of the biggest recipients of the Blur token giveaway in February and reportedly sold 1,010 NFTs within 48 hours on February 25th in “the biggest NFT dump ever.”
There are currently 846 active loans on the platform at press time, with eight refinancing events. As a perpetual lending protocol, Blend automatically renews the loan at maturity, provided that neither the borrower nor the lender objects. Loans can also be refinanced or held at a Dutch auction in the event of a change in the interest rate. The developers of the protocol claim that Blend does not charge a fee for either a loan or a loan, but only interest.
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
Last year, NFT lending protocols fell into disarray after a cryptocurrency bear market saw many collectibles become illiquid, some of which were never claimed at all. One protocol, Bend DAO, had only $23,715 to pay back lenders at the time after making loans of over 15,000 ETH.
