According to an announcement, Binance, the renowned cryptocurrency exchange, will be launching the Binance NFT loan service on May 26.
This new offering comes approximately two years after the introduction of the Binance NFT marketplace. Initially, the service will focus on facilitating Ethereum loans and will extend support to prominent high-value NFT collections such as Bored Ape Yacht Club (BAYC), Azuki, Mutant Ape Yacht Club (MAYC), and Doodles.
Zero Ethereum gas fees
Binance provides several advantages to users, including the elimination of Ethereum gas fees, which incentivizes the adoption of the new product. Additionally, Binance is offering a significant discount on borrowing interest rates, reducing the standard annual interest rate from 11.2% to 3.36%, amounting to a 70% reduction. This promotional rate will be applicable from the launch date and will continue until further notice.
As per the information available on the Binance NFT website, the loan-to-value ratio for the NFT collections supported by the platform varies between 40% and 60%. Among these collections, Bored Ape Yacht Club (BAYC) has the highest ratio, while Doodles has the lowest.
The announcement also mentioned that the Binance NFT loan service will expand its support for additional assets available for borrowing and introduce more options for NFT collateral in the future.
