Blur, the controversial NFT marketplace known for its optional royalties and sizable token airdrops has just announced the launch of a lending tool titled Blur Lending or “Blend.”

1/ Blur Lending, aka Blend, is NOW LIVE.

If you have a Punk, you can now borrow up to 42 ETH within seconds.

If you want an Azuki, you can now buy one with just 2 ETH up front.

Points have been updated as well. Learn more ? pic.twitter.com/jRBwE8DYEo

— Blur (@blur_io) May 1, 2023

The Blend program is aimed at NFT holders who are looking to borrow against their holdings without the need to sell them, a concept that has been in the NFT finance space for some time.

Early examples of this include the Ape Now Pay Later offering from Teller Finance, which hasn’t gained quite as much momentum as expected. Other existing lending platforms include NFTfi, which has been among the most popular, allowing users to take out DAI, USDC, and ETH loans against their digital assets.

Similar to existing platforms, Blend is launching with only a select few collections eligible for borrowing or buying with BNPL (buy now pay later), including CryptoPunks, Azukis, and Miladys.

NFT holders can borrow up to 42 ETH against their Punk and users interested in Azukis can buy one with as little as 2 ETH up front. Blur states that the program is designed to provide liquidity for NFT holders without having to sell their assets, which can force them out of collections and hurt floor prices.

The Blend program also introduces lending points, which have replaced listing points on Punks, Azukis, and Miladys. Although, Blur shared that select collections will still receive 2x points, while all others now earn 1x points and that points may change on a per-collection basis moving forward.

A gamified aspect of the BNPL offering is that buyers can flip the NFT for a higher price without having to purchase it in full, though interested parties should be aware of pre-agreed daily interest rates before taking this chance.

Through Blend, no liquidation prices or expiry dates are attached to loans and lenders can demand loan repayment at any moment, initiating a Dutch auction to locate a new lender — in the absence of a new lender, the NFT will be liquidated.

While the NFT finance sector can be rewarding, it also comes with its own risks and exposure to manipulation, as seen in last year’s BendDAO crisis. Only time will tell if Blend will position itself differently from other lending platforms and if its popularity will have the ability to bring NFT lending mainstream.

In other news, Yuga Labs is ready for its next stage of storytelling, hiring former Epic Games exec as new CTO.