Crypto exchange Binance plans to release its NFT Loan feature at 7:00 am ET on Friday.
The new feature will facilitate ETH loans at launch, supporting high-value NFT collections like Bored Ape Yacht Club (BAYC), Azuki, Mutant Ape Yacht Club (MAYC), and Doodles.
According to the announcement, users will be offered a 70% discount on borrowing rates during the initial promotion period. This will bring down the standard borrowing interest rates of 11.2% per annum to 3.36% per annum.
The platform will also facilitate instant liquidity, zero gas fees and liquidity protection. Binance will act as the pool for these peer-to-peer loans, which will be open-term and overcollateralized.
Each NFT collateral-loan pair will also have its own distinct Loan to Value (LTV) ratio. At the time of writing, the BAYC collection had an LTV of 60% and the Doodles collection had an LTV of 40%.
Binance is the newest entrant to the NFT lending space, which has grown into a $1 billion industry, according to data from Dune. Some of the largest players include NFTfi and BendDAO, which have facilitated $429 million and $315 million worth of cumulative borrowing volume respectively over time.