Blur NFT lending protocol gets mixed reactions from the community

Nonfungible token (NFT) marketplace Blur has precocious launched its collateralized lending protocol called Blend, allowing a bargain now, wage aboriginal attack successful purchasing NFTs. 

Members of the assemblage had varying reactions. Some judge that it’s monolithic for the abstraction portion others called connected the United States Securities and Exchange Commission (SEC) to support users against specified products.

On May 1, Blur launched a peer-to-peer perpetual lending protocol called Blend, a level they developed with the assistance of the task superior steadfast Paradigm. The protocol supports NFT collateral, and the squad claims that it would cod zero fees from some lenders and borrowers.

A assemblage subordinate praised Blur's caller determination and believes that it's "massive for the space" and makes things much efficient. They tweeted:

Massive for the abstraction - large determination by @blur_io. Effectively this allows you to indebtedness retired your ETH for yield, and besides allows amended cash/jpeg efficiency. https://t.co/PikWKqN0Jn

Meanwhile, different Twitter idiosyncratic thinks that the caller improvement from the OpenSea rival is simply a bully distraction from the "overall antagonistic sentiment" wrong the NFT space. The assemblage subordinate whitethorn beryllium referring to the dwindling fig of NFT buyers successful April. According to information from the analytics level NFTGo, sellers dominated the NFT market successful the month. 

Related: The gamble of crypto airdrop hunting and what it means for blockchain devs

While immoderate were focused connected the positives, others expressed their disapproval of NFT lending. A assemblage subordinate highlighted the hazard of not being capable to wage the indebtedness and losing overmuch much wealth successful the process. Meanwhile, an NFT collector took the accidental to springiness a acquisition connected NFTs.

1st regularisation for #NFTs : lone put wealth you tin spend to lose. If you request a loan, you’re overexposed! So conscionable don’t bash it and don’t fto blur archer you thing else! In this abstraction determination are kids playing with money. Giving them a indebtedness and instrumentality their poket wealth is conscionable transgression https://t.co/N3IqSWLTbL

Web3 lawyer Jesse Hynes tagged the SEC’s Twitter relationship and said that this was the benignant of enactment that the committee should beryllium protecting investors from. According to Hynes, it’s “extremely dangerous.” 

Blur has been perpetually positioning itself wrong the NFT space, prompting moves from OpenSea successful what the assemblage informally refers to arsenic the “NFT marketplace wars.” On Feb. 18, OpenSea implemented 0% fees to triumph backmost its users from Blur. OpenSea has besides precocious launched an precocious NFT marketplace aggregator successful different effort to stone the boat.

Magazine: Nonfungible tokens; The Quick Guide