Binance Launches ‘NFT Loan’ Service

Binance has launched NFT lending, a service where users can borrow ETH in exchange for certain NFTs. Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki were among the NFT projects to be supported in the first phase of this service. As part of this service, users will be able to temporarily lend their NFTs to the platform and borrow Ethereum up to a certain amount in return.

Looking at the details on the page of Binance’s NFT Loan service, it is seen that the current interest rate on NFT loans varies between 7.91% and the loan rate varies between 40% and 60%. These rates vary depending on the NFT project being loaned. On the other hand, no transaction fee will be charged during the NFT lending process.

There is a limitation on the amount of Ethereum that users can borrow for each project. While the maximum amount of ETH that can be borrowed for BAYC NFT lending service is determined as 4,500 in total, 4,475 ETH of this amount has been used from the very first day. The NFT lending service was launched by the new actor of the market, Blur, at the beginning of this month and attracted great interest from the community.