Volume of loans secured by NFTs on the Blend platform exceeded $16 million on the first day

The biggest creditor was the Taiwanese musician Machi Big Brother

03.05.2023 - 10:00

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According to data sourced from user @beetle from Dune Dashboard, nonfungible token (NFT) marketplace Blur has facilitated 8,820 Ether, or roughly $16.37 million, in loans through perpetual NFT lending protocol Blend one day after its launch. On May 1, Blur introduced Blend as a novel protocol for pledging NFTs for loans, which was developed in conjunction with venture capital firm Paradigm.

Together, the Azuki, Wrapped CryptoPunks and Milady NFT collections represent the largest collateral, with over 8,000 Ether ETH $1,853 worth in market value pledged. The top Blur lender, who has issued 58 loans worth 1,180 ETH, is Taiwanese celebrity Jeff Huang, also known as Machi Big Brother.

A prominent figure in Taiwan's music industry, Machi Big Brother is also an avid collector of the Bored Ape Yacht Club NFT series. Machi was one of the biggest recipients of the Blur token airdrop in February and reportedly sold 1,010 NFTs within 48 hours on Feb. 25 in the "largest NFT dump ever."

There are 846 active loans on the platform at the time of publication, with eight refinancing events. As a perpetual lending protocol, Blend automatically extends the duration of loans at expiry, assuming neither the borrowing nor lending party objects. Loans can also be refinanced or held at Dutch auction in case of interest rate changes. Protocol developers claim that Blend charges neither borrowing nor lending fees, but only interest.

Last year, NFT lending protocols fell into disarray after a crypto bear market caused many collectibles to become illiquid, some of which had no bids at all. One protocol, BendDAO, had as little as $23,715 to pay back lenders at the time after facilitating more than 15,000 ETH in loans.

This material is taken from the website https://cointelegraph.com.

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