The NFT marketplace of crypto exchange Binance has just added the option to make cryptocurrency loans secured by NFTs.
Currently, digital assets from the Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki and Doodles collections can be used as collateral.
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At the moment only ETH can be borrowed using NFTs as collateral. Binance plans to expand the list of available collections and cryptocurrencies in the future.
The current interest rate on loans is 3.39% per annum. The ratio of borrowed funds to token value ranges from 40% to 60%. There will be no gas fees on Ethereum.
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Binance announced earlier this month the integration of Bitcoin’s Ordinals with its marketplace. According to the company, the Bitcoin-based solution "offers unique and innovative opportunities to create non-fungible tokens."