The NFT marketplace of the Binance crypto exchange has integrated the function of borrowing cryptocurrencies secured by non-fungible tokens.
Currently, digital assets from the collections of Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki and Doodles are available as collateral.
So far, only Ethereum can be obtained on the security of NFT. In the future, Binance will expand the list of available collections and cryptocurrencies.
The current interest rate on lending is 3.39% per annum. The ratio of borrowed funds to the value of tokens ranges from 40% to 60%. There will be no gas fees in Ethereum.
“The loans will add a new form of liquidity for NFT holders, allowing them to participate in the market without having to sell their precious tokens,” Binance product manager Mayur Kamat said in a comment to The Block.
In May, Biannce announced the integration of Bitcoin Ordinals with its marketplace at the end of May. According to the company, the Bitcoin-based solution “offers unique and innovative opportunities for creating non-fungible tokens.”
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