Binance NFT Loans: Unlocking Liquidity for Users
Binance NFT has launched a new feature called NFT Loan, which allows users to obtain cryptocurrency loans by using their NFTs as collateral. This feature aims to provide liquidity without the need to sell valuable digital assets. Users can borrow Ethereum (ETH) against their NFTs, with competitive interest rates and no gas fees. Currently, loans can be secured against popular NFT collections like Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and Doodles, with more collections expected to be added in the future.
Binance NFT aims to become a comprehensive platform for NFT trading and financial services, offering low fees, security, and now NFT-backed loans. The loan amount is determined based on the floor price of the NFT collection, using Binance's Oracle Pricing that combines data from various sources. This feature provides a convenient solution for NFT holders who require quick access to funds while keeping their valuable NFTs.