Blur NFT lending protocol gets mixed reactions from the community
Nonfungible token (NFT) marketplace Blur has recently launched its collateralized lending protocol called Blend, allowing a buy now, pay later approach in purchasing NFTs.
Members of the community had varying reactions. Some believe that it’s massive for the space while others called on the United States Securities and Exchange Commission (SEC) to protect users against such products.
On May 1, Blur launched a peer-to-peer perpetual lending protocol called Blend, a platform they developed with the help of the venture capital firm Paradigm. The protocol supports NFT collateral, and the team claims that it would collect zero fees from both lenders and borrowers.
A community member praised Blur's new move and believes that it's "massive for the space" and makes things more efficient. They tweeted:
Massive for the space - great move by @blur_io. Effectively this allows you to loan out your ETH for yield, and also allows better cash/jpeg efficiency. https://t.co/PikWKqN0Jn
Meanwhile, another Twitter user thinks that the new development from the OpenSea competitor is a good distraction from the "overall negative sentiment" within the NFT space. The community member may be referring to the dwindling number of NFT buyers in April. According to data from the analytics platform NFTGo, sellers dominated the NFT market in the month.
Related: The gamble of crypto airdrop hunting and what it means for blockchain devs
While some were focused on the positives, others expressed their disapproval of NFT lending. A community member highlighted the risk of not being able to pay the loan and losing much more money in the process. Meanwhile, an NFT collector took the opportunity to give a lesson on NFTs.
1st rule for #NFTs : only invest
Read more on cointelegraph.com
