NFT loans on Blur. The basics of how to earn | by Golden Trades | Coinmonks | Medium

🏦 NFT loans on Blur. The basics of how to earn

Today we have an interesting topic to discuss and explain for you. We will learn what it is, give an understanding of it, and explore the opportunities to benefit from it. Let’s get started!

🔖 Let’s start with the basics.

Many of you may be familiar with the platform Blur. Yesterday, they introduced a new protocol called Blend.

Blend is a protocol for perpetual lending, allowing borrowers and lenders to extend the term of the loan without requiring any transactions on the network.

If a lender wants to close the debt, an auction will be held for 30 hours until a new lender is found to close the loan. If no one takes it, the loan will be liquidated.

Currently, you can only use the lending platform for three collections — Azuki, Milady, and CryptoPunks.

Now you can also earn points for using the platform, like for other functions. You can learn more about it in their article and tweets:

Link to the article 👇

Season 2 Rewards & Loyalty

300M+ BLUR will be distributed in Season 2 to the Blur community. Points and Loyalty determine how much BLUR each…

Announcement on Twitter 👇

🖇 How to benefit from it? Key points:

We can use our NFT to borrow ETH. We borrow 5 ETH with 20% APY from our Azuki. Alternatively, we can make a down payment using NFT and pay the rest later. We buy Azuki for 5 ETH and then another 10 ETH with 20% APY.

Since listing points are disabled in collections with a landing page, people will sell their NFTs much less often. Farmers will be able to raise prices with fewer purchases and avoid dumps with loans.

  • Follow Twitter. Set up notifications on the Blur Twitter account because they will be adding more collections with a landing page. Liquidity injection is inevitable, so the earlier we buy, the more we’ll earn.
  • Offer loans. Use everything wisely, as there may be a rollback at any moment, and you could lose everything. But with a reasonable approach, this is a good chance to farm points.
  • Bid on collections with a 1x reward for listing. Only 14 collections will be able to receive 2x. Most farmers will jump into collections with 2x, and the rest will suffer less.
  • Small games. You can also play around and use shorts on nftperp at the moment when a lot of credits should be liquidated. Again, be careful.

⚙️ What’s next?

All of this has sparked mixed reactions in the community. Whales will now be able to manipulate the already volatile NFT market even more.

Newcomers could lose money. They may think they will get that coveted NFT but forget about the risks. This has resulted in sharp spikes in FP for some collections.

However, there are people who are adapting and showing us interesting moves. One guy was able to get Milady literally for 0 ETH, and another got Azuki for 0.04 ETH. Beautiful.

Overall, this innovation is quite interesting, although not new to the market. It is likely to lead to the growth of many NFT collections with lending, but later a decline due to aggressive loan offerings.

❕Share your thoughts with us about this Blur update. Be sure to be cautious, informed, and avoid getting “rekt”. If you have saved your money, then you have earned it.

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