The world’s largest crypto exchange by trading volume, Binance, has released a new non-fungible token (NFT) loan feature.
According to a new Binance announcement, the platform will offer zero gas fees and the ability to borrow Ethereum (ETH) without the need to sell assets.
The loan feature aims to cater to those who want quick access to funds but don’t want to part with their NFTs. It uses what Binance calls a “Peer to Pool” mechanism with Binance NFT acting as a loan pool, and the amount of ETH that users can borrow depends on the floor price of their NFTs. Data for the system comes from multiple sources, including oracle service Chainlink (LINK) and NFT marketplace OpenSea.
At time of writing, Binance’s NFT Loan feature supports just four well-known collections, but more are expected to roll out soon.
“Initially available with select high-profile NFT projects such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Azuki, and Doodles, the innovative feature introduces the benefits of decentralized finance (DeFi) to the Binance NFT community. More collections are expected to be added in the near future.”
Binance launched its NFT platform in June of 2021 and has steadily been adding features ever since. In March, the crypto exchange launched a beta version of an artificial intelligence-based NFT image generator called “Bicasso.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Juan Manuel Rodriguez/WindAwake