According to data from Dune Dashboard user @beetle, non-fungible token (NFT) marketplace Blur facilitated 8,820 ether ($16.37 million) in loans via permanent NFT lending protocol Blend a day after its launch. On May 1, Blur and venture capital firm Paradigm co-developed Blend as a new protocol for collateralizing NFT loans.
Azuki, Wrapped CryptoPunks, and Milady NFT collections collectively represent the largest collateral holding over 8,000 ETH, The market value of the value promise. Blur's top lender is Taiwanese celebrity Jeff Huang, also known as the Machi Big Brother, w ho has disbursed 58 loans worth 1,180 ETH.
As a prominent figure in Taiwan's music industry, Brother March is also an avid collector of the Boring Ape Yacht Club NFT series. Machi was one of the largest recipients of the Blur token airdrop in February, reportedly selling 1,010 NFTs in a 48-hour period on Feb. 25, the “largest NFT dump ever.” At press time, there were 846 active loans on the platform, with 8 refinancing events. As a perpetual loan agreement, Blend will automatically extend the loan period when the borrower matures, provided that neither the borrower nor the lender objects. The loan can also be refinanced or held in a Dutch auction if interest rates change. Protocol developers claim that Blend charges neither borrowing nor lending fees, only interest.
NFT lending protocols were thrown into disarray last year after the cryptocurrency bear market left many collectibles iliquid, some with no bids at all. A protocol called BendDAO had only $23,715 to repay the lender at the time after facilitating a loan of more than 15,000 ETH.
