Binance Unleashes NFT Loan Feature
Binance, the world's largest cryptocurrency exchange regarding trading volume, has introduced a new feature related to non-fungible tokens (NFTs).
As per the recent announcement by Binance, the platform will provide users with the option to borrow Ethereum (ETH) without having to sell their assets, along with zero gas fees.
Binance employs a “Peer to Pool” mechanism, where Binance NFT serves as a loan pool. This loan feature is designed to accommodate individuals who require quick access to funds but are unwilling to part with their NFTs.
The amount of ETH that users can borrow depends on the minimum price of their NFTs. Data from various sources, including Chainlink (LINK) oracle service and OpenSea NFT marketplace, contribute to the system.
Binance’s NFT Loan feature currently supports a limited number of renowned collections. However, the platform plans to introduce additional collections in the near future.
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Binance expressed, “Initially, this innovative feature will be available for select high-profile NFT projects such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles, aiming to bring the advantages of decentralized finance (DeFi) to the Binance NFT community. More collections will be incorporated soon.”
Binance unveiled its NFT platform in June 2021 and consistently added new features. In March, the exchange launched a beta version of “Bicasso,” an NFT image generator driven by artificial intelligence.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
