Blend, the innovative NFT lending platform launched by Blur, has rapidly gained traction in the market. Within 17 days of its inception, Blend has facilitated over 100,000 ETH in total volume, equivalent to approximately $181 million.
By allowing users to collateralize their NFTs for Ethereum loans, Blend allows them to invest in new NFTs on the Blur marketplace while liquidity providers can earn interest. So far, the platform has recorded 3,000 loans from 900 unique lenders.
The recent addition of esteemed NFT collections, such as Bored Apes Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), further fueled the platform’s success. The inclusion of BAYC and MAYC collections resulted in a substantial volume of 2,267 ETH on the first day alone.
BAYC ranked third as the most traded collection on Wednesday, with a 3,082 ETH trading volume, trailing behind Azuki (4,616 ETH) and Wrapped Cryptopunks (2,260 ETH). Azuki remains the leading collection in total volume by surpassing 50,000 ETH, accounting for almost half of the platform’s overall volume.
While Blend thrives, Blur itself has experienced some challenges. As the predominant NFT marketplace, Blur captured nearly 59 percent of the total NFT transaction volume, solidifying its position in the industry.
However, there have been concerns regarding potential wash trading operations on the platform, particularly during its token launch. Analysts have pointed out that Blur had significantly fewer traders compared to OpenSea.
In response to suspicions of market manipulation, NFT tracking platform CryptoSlam decided to remove $577 million worth of Blur trades from its data. It also implemented an updated algorithm to filter future Blur trades, excluding suspicious transactions.
Pioneering P2P NFT lending
Unlike conventional peer-to-peer lending protocols, Blend’s NFT-centered protocol offers perpetual loans without predetermined repayment timelines.
These loans will continue to accrue interest until repaid or until the lender triggers a refinancing auction. Then, if the lender desire, another party can assume the loan, or a liquidation auction can be initiated to sell the NFT collateral.
Importantly, Blend does not rely on oracles or external data sources. Unlike some lending platforms, Blend does not factor in NFT pricing data from various marketplaces to determine liquidation criteria, ensuring a more streamlined and independent loan process.
Blend was created to generate significantly higher yields than existing DeFi protocols while unlocking enhanced liquidity for NFTs.
Initially, borrowers and lenders on Blend will not be subjected to fees. Instead, after 180 days, BLUR token holders will have the opportunity to vote on the implementation of fees.
Blend was developed in collaboration with Dan Robinson and Transmissions11, both associated with Paradigm, a prominent crypto venture capital firm. Paradigm previously led Blur’s successful $11 million seed funding round in March 2022.
Blur emerged last fall as a formidable challenger to OpenSea, the leading NFT marketplace at the time. The platform has since distinguished itself by offering token rewards to incentivize traders. On top of that, Blend’s move to include prominent NFT collections, such as BAYC and MAYC, has also boosted its appeal and solidified its position in the NFT market.
 in only 17 days.){kind=link}