Binance NFT has recently launched an exciting new product. The world’s biggest crypto exchange is expanding its NFT platform with the addition of Binance NFT Loan Service.
Why does everyone prefer using Binance?
Binance is a well-known cryptocurrency exchange that has gained wide popularity in the cryptocurrency community. A wide range of trading options and robust features have established Binance as the leading platform for buying, selling, and trading digital assets.
The platform has a user-friendly interface accessible to both beginners and experienced traders. Intuitive design and smooth navigation make for a seamless trading experience. Binance also takes security very seriously and has taken various measures to protect user funds, such as two-factor authentication and cold storage.
Binance offers advanced trading options such as spot trading and margin trading. Spot trading allows users to buy and sell cryptocurrencies at the current market price, while margin trading allows traders to borrow funds to strengthen their trading positions. These features allow for different trading strategies and preferences, providing flexibility for traders of all experience levels.
The Binance NFT Loan Program
Binance will now allow blue-chip NFT holders to use their prized digital assets as collateral for loans. This allows these holders to unlock liquidity in their NFT portfolios without having to sell anything. Not only does this new feature allow for quick and easy liquidity, but it also allows NFT holders to execute swing trades without having to worry about incurring a taxable event on an expensive NFT.
The new program currently supports only a handful of leading NFT collections. These projects include Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and Doodles. Binance expects to add more collections to its offerings soon but has not published any specific info on the matter.
The service features competitive interest rates and does not require expensive Ethereum gas fees. This blending of NFTs and DeFi offers greater flexibility and utility to NFTs. Unlike IRL things like houses or cars, digital assets can now be used to get instant lines of credit without weeks of applications and tedious underwriting.
Mayur Kamat, the Head of Product at Binance, wrote, “Binance NFT is building! With the addition of a host of features, we are striving to become the go-to platform for NFT trading and financial services. We not only offer low fees and the security of Binance but now also provide NFT Loans, a new form of liquidity for NFT holders. This enables them to engage in the market without parting with their valued NFTs.”
How does the Binance NFT loan service work?
The program provides interest rates via a “Peer to Pool” approach. Binance NFT functions as the pool for loans, and loan customers can then select specific offers that fit their needs. It relies on Chainlink and OpenSea to determine different NFT projects’ floor prices.
Binance continues to disrupt despite dominating a huge share of the crypto industry’s market share. So, by offering loan services to its customers, it continues to be an innovator in the space. Binance diving deeper into NFTs is massively bullish, as it puts more eyes on them.
