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Unleash the NFT Potential: Binance Launches Binance NFT Loan, Empowering Users with Instant Funds and NFT Preservation

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  • Binance, the world’s leading crypto exchange, has introduced a new feature that allows non-fungible token (NFT) owners to borrow Ethereum (ETH) without selling their assets. 
  • The feature, known as Binance NFT Loan, currently supports four well-known collections, with plans to include more in the future.

Binance Unveils New NFT Loan Feature

Binance, the world’s foremost cryptocurrency exchange in terms of trading volume, has made an exciting announcement about the addition of a new non-fungible token (NFT) loan feature. According to Binance, this new service provides zero gas fees and enables users to borrow Ethereum (ETH) without needing to sell their digital assets. The feature is primarily designed for users seeking immediate access to funds without having to relinquish their NFTs.

Peer to Pool Mechanism: A New Borrowing Paradigm

The Binance NFT Loan feature operates through what’s termed a “Peer to Pool” mechanism, where Binance NFT acts as the loan pool. The amount of ETH users can borrow is dependent on the floor price of their NFTs. The system draws data from various sources, including the oracle service Chainlink (LINK) and the NFT marketplace OpenSea.

As it stands, the NFT Loan feature supports only four popular collections, but Binance plans to extend support to more collections in the near future. In the words of Binance,

“Initially available with select high-profile NFT projects such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles, the innovative feature introduces the benefits of decentralized finance (DeFi) to the Binance NFT community. More collections are expected to be added in the near future.”

Binance launched its NFT platform in June 2021 and has been incrementally adding features since then. Most recently, in March, the crypto exchange debuted a beta version of an artificial intelligence-based NFT image generator, aptly named “Bicasso.” This tool is just another example of how Binance is continually innovating and expanding its offerings to cater to the evolving needs and preferences of its user base.

The introduction of the Binance NFT Loan feature reflects the exchange’s commitment to leveraging the potential of DeFi and NFTs in a way that enhances user experience and broadens accessibility to digital assets.

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AnnJoy Makena
AnnJoy Makenahttps://www.ethnews.com
Annjoy Makena is an accomplished and passionate writer who specializes in the fascinating world of cryptocurrencies. With a profound understanding of blockchain technology and its implications, she is dedicated to demystifying complex concepts and delivering valuable insights to her readers. Business Email: info@ethnews.com Phone: +49 160 92211628