The NFT marketplace of cryptocurrency exchange Binance, which was launched in June 2021, has just added the possibility of borrowing cryptocurrencies using NFTs as collateral.
At launch, this new feature allows to borrow ETH against NFTs such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki and Doodles.
At the moment, the interest rate on NFT loans is 7.91% p.a., whereas loan to value ratio ranges from 40% to 60%. It is important to note that Binance doesn’t charge any gas fee or Ethereum transaction fee.
NFT marketplace Blur rolled out its NFT lending protocol earlier this month.