On May 1, the popular NFT token exchange Blur has launched “Blend”, a peer-to-peer lending protocol that supports NFT collateral, developed jointly with venture capital firm Paradigm.
“Blend will match users looking to borrow on their NFT collateral with any lender willing to offer the most competitive rates. using sophisticated off-chain protocols.”
Borrowers and lenders can extend the expiration of the loan by the default length of time. If the lender wants to terminate the loan without meeting the needs of the borrower There will be a “Dutch auction” for refinancing when borrowers fail to pay their debts when they are due. The auction will start at 0% refinance interest with increasing rates.
“In Blend, NFTs may be liquidated whenever a lender has a refinance bid. And no one is willing to take on debt at any interest rate.”
The developer explains that Borrowers can repay their loan at any time on Blend. “If the borrower wants to change the amount borrowed or get a better interest rate They can take the new loan against the collateral and use the new principal to pay off the old one.”
refer : LINK
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