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- Blend is NFT lending on steroids
GM. Hope you’re having a wonderful week. Tell us what you’ve been up to (just reply to this email), we’d love to know!
Today we cover:
What’s going on in the markets
Blend is NFT lending… on steroids
What Driftershoots has been up to
4 exciting projects to watch for in May
Market Update: All Flat
This week, the Forkast 500 NFT index experienced a minor drop of about 1%—not a significant change.
Doodles saw a nice increase in floor price after the announcement about its Stoodio launch, hitting 3 ETH briefly before falling back to around 2.7 ETH now.
Here’s how we interpret this: there isn’t enough interest and new participants in NFTs to move prices very much. So things are going to remain flat for a while.
Blend: NFT Lending on Steroids
💲 What to know: Blur took everyone by surprise with the launch of their new NFT lending protocol, Blend.
In no time, Blend has skyrocketed to become the #1 NFT lending protocol by volume, boasting an impressive $16 million loan volume in just a matter of days.
Blend is now the #1 NFT lending protocol by volume and users on Ethereum!
Since launch Blend has originated $16m in loan volume, 25x more loan volume than the previous top NFT lending protocol.
— Blur (@blur_io)
6:01 PM • May 2, 2023
☘️ In the weeds: Blend allows you to purchase NFTs on Blur using borrowed funds. For example, you can purchase an Azuki (floor price of 15 ETH) with just 0.6 ETH.
When you borrow funds, your balance starts growing at an interest rate based on your loan terms. At some point, you might want to repay your loan to take full ownership of your NFT or sell it, keeping any profit remaining after repaying the borrowed balance.
Imagine selling your NFT for 12 ETH a month after borrowing 10 ETH at that same daily interest rate. In this case, you'd keep 1.85 ETH, and the remaining 10.15 ETH would repay your borrowed balance.
Sometimes, the lender may ask you to repay or refinance your loan, usually when the floor price of your NFT drops. When this happens, an automatic process begins to find a new lender with similar terms. If a new lender isn't found within 6 hours, you have 24 hours to repay or refinance your loan.
Lenders earn points for making loan offers, so we’ve seen some interesting things happen already…
A crazy new first:
A loan where someone got paid to buy an NFT
A lender offered 3.4 ETH on a Milady. Floor went to down 3.36 ETH
Buyer took the 3.4 ETH, spent 3.36 ETH on Milady. Made the ETH + free call option.
Hat-tip @k2_nft. Follow him ASAP. Best in the game.
— NFTstatistics.eth (@punk9059)
2:22 AM • May 3, 2023
If you'd rather not repay your loan, refinancing with a new lender is another option. This process is automatic based on available loan offers, so you don't need to take any action for refinancing if there are suitable loan offers.
🤑 Why it matters: So, Blend is giving borrowers the best of both worlds with the highest Loan-to-Value (LTV) and the lowest Annual Percentage Rates (APRs) for loans, all subsidized by $BLUR tokens.
Now, it makes you wonder, right? What's the end game here?
The thing is, the lending activity on Blend seems pretty inorganic (meaning, lenders probably wouldn't be making these loans if there weren't any token incentives). And guess what? This method also brings in price volatility, which catches the eye of traders. It's going to be fascinating to see how this affects NFT prices in the mid term.
This Week’s News & Coolest Tweets
🐥 Polygon NFTs are doing well
🟩🟥🟧🟨⬜🟦 @y00tsNFT, and other NFT projects like @PlayWildcard, @Reddit, @BrozoNFT and @CollectTrump saw $30M in NFT secondary sales volume the past 5 weeks.
The data (w *open-sourced* methodology) on FIVE marketplaces that you should be optimistic over @onPolygon_👇
— Peter (📖, ✍️, 🔑) (@p_petertherock)
12:21 PM • Apr 27, 2023
🐥 Moonbirds restarts its Diamond Exhibition
💎 Diamond Exhibition Update! 💎
The Diamond Exhibition mint will reopen for Mint Pass holders and new Diamond Nested birds TODAY, May 2nd at midday PT!
For those interested in reshuffling your Day One airdrop, here’s what you need to know ⬇️:
— Moonbirds (🦉, 🎨) (@moonbirds)
6:03 PM • May 2, 2023
🐥 Find your niche and stick to it
I have crippling decision fatigue w/r/t crypto trading/investing... there are just too many things going on:
🔹Too many niches to keep track of: nfts, defi, gaming, daos, infra
🔹In each niche there are different sizes to play at:
majors, mid caps, shitcoins, free mints etc.… twitter.com/i/web/status/1…— Ben Roy (@benroy__)
12:00 AM • May 2, 2023
🐥 Driftershoots hasn’t been resting, he’s been working on new art
As far as the road ahead I would say outside the rarepass drop, I’m hoping to have new work ready later this year depending on how I feel about the changes I’m making. I will also have my first photo book. There will be a FDO update announced then too.
— Drift (@DrifterShoots)
3:01 PM • May 2, 2023
🐥 More details on Goblintown Season 2
Cₕₐₚₜₑᵣ ₆₄: @biginc ᵣₑᵥₑₙgₑ ₒf ₜₕₑ ₛₑᵣᵢᵤₛ ᵢₙᵥₑₛₜᵤᵣ
goblintown.wtf/chapter64
— goblintown.wtf (@goblintown)
5:20 PM • May 2, 2023
🐥 Doodles launches the Stoodio this week, collabs with Pharell
Pharrell
The Stoodio
Doodles 2It’s all happening tonight.
— doodles (@doodles)
7:13 PM • Apr 28, 2023
New Projects Corner
🍿(Collectible) Imaginary Rides, the next collection by Imaginary Ones on 7 May
<< Imaginary Rides Mint Details >>
Allowlist Mint Starts: 7th May, 10pm ET / 8th May, 10am SGT
Duration: 24 hoursMint Price: 0.145 ETH
Collection Size: 10,800 Mintable (20,000 total)There will be NO PUBLIC MINT.
More @ https://t.coimaginaryones.medium.com/4179134c9772
[1/7] https://t.co
— Imaginary Ones (@Imaginary_Ones)
10:01 AM • May 1, 2023
🍿 (Utility) Icarus pass gives access to their SaaS ecosystem. Mint end of May, Applications open
Thrilled to announce the upcoming mint of our 1,000 Icarus Passes at the end of May.
Application is now LIVE👇
app.shuttlebay.xyz/fusionTo mark this milestone, we're giving away 4 x complimentary mints to our Day1 supporters who have been with us since our launch back in Jan'22. twitter.com/i/web/status/1…
— Fusion XYZ (@FusionXnft)
1:39 PM • May 2, 2023
🍿 (PFP) Sapien’s premint is live for another 24 hours. This project uses a new NFT standard that allows Sapien NFTs to own other NFTs.
1/ 🚨🔥 FINAL 48 HOURS OF PREMINT, FLOCK! 🚨🔥
We're down to the LAST 48 HOURS of the SAPIENZ premint! Don't miss out; premint closes on May 4th at 5 PM PST ⏰ Aiming for the 🔥 final raffle prizes? Premint by May 3rd at 12 PM PST to be eligible!🎁
🔗 sapienz.xyz 🔗
— STAPLEVERSE (@stapleverse)
12:36 AM • May 3, 2023
🍿 (Utility/PFP) The Llamas is a reputation NFT for the Curve ecosystem. Auctions begin on 10 May
We're just over a week away from the Public Auctions
Mark your calendars!thellamas.io
All mint fees, royalties, & future revenue goes to The Llamas' community owned, non-dilutable real-yield flywheel.
Making the next generation of NFT-Fi a reality.
#the#thellamasV http
— The Llamas (@WenLlama)
9:21 PM • May 2, 2023
That's it for today folks, see you next week. If you want more, follow us on Twitter (@the_metadata). If you found this newsletter helpful, imagine how much your friends will love you if you forwarded it to them. 🥹
Disclaimer: This newsletter is for educational purposes only. None of this is financial or investment advice. It is not a solicitation to buy or sell any assets. Minting and buying NFTs is risky. Please do your own research.