The announcement from Blur entails the launch of Blend, which is a pioneering permanent lending arrangement for NFTs, collaborated on with Dan Robinson as well as Transmissions11. Importantly, Blend brings no fees to lenders and borrowers, while its code is licensed under the BSL, alongside Uniswap V3.
Blend functions as a peer-to-peer protocol for perpetual lending, allowing for the deployment of arbitrary collateral, including NFTs. As a futuristic offering, Blend is built without oracle dependencies or expiries, which means that borrowing positions can remain open until they are liquidated, with interest rates determined by market activity.
Moreover, Blend incorporates a sophisticated off-chain offer protocol that connects users who desire to borrow against their non-fungible collateral, with the most competitive lenders.
In its design, Blend loans are established with fixed rates and no expiry dates. Borrowers have the flexibility to repay at their convenience, while lenders can choose to exit by initiating a Dutch auction to seek out a new lender and an adjusted rate. Failure to meet the optimal bid in the auction would trigger liquidation, with the lender acquiring possession of the collateral.