The NFT trading market Blur has created a lot of trading volume and Liquidity under the mechanism of giving Liquidity AirDrop rewards , which has advantages and disadvantages for users who make market-making AirDrop. Blur also made Maji’s brother Huang Licheng claim to withdraw from the NFT market. Yesterday, Blur announced the launch of Blend, a perpetual lending agreement , and introduced a series of fee-free policies. However, this also made netizens ask: how do you make money?
Blur shouts: NFT transactions and loans do not require handling fees
Blur 5/2 stated that Blur’s agreement fees are all charged. Including Blur's NFT market, Blur's lending agreement Blend.
It also reminds that the interest on the borrowed part must still be paid, but the interest will be fully given to the lender.
PSA
Blur fees by protocol:
Blur Marketplace: 0% fees for traders
Blur Lending (Blend): 0% fees for borrowers and lenders
Note that borrowers still pay interest on loans based on what lenders offer. 100% of that goes to the lender.
— Blur (@blur_io)May 2, 2023
Blur does not charge at all, so how does the agreement make money?
"Then how do you make money?" asked the netizen. After all, the operation of the team also needs funds.
Blur replied, we don't charge any fees. Holders of token BLUR can change key parameters of the NFT market and lending agreement, including fee parameters, after 180 days. Blur means that BLUR tokens are used for governance purposes, and Blur can charge fees through resolutions in the future.
In addition to the "statement" given by Blur, we must also consider that zero handling fees are a weapon for Blur to compete with the market. If the fee structure is changed, it may be detrimental to product competition. Blur also cooperates with the market maker Wintermute , and of course there are financial resources for selling tokens in the secondary market; Blur may also participate in the lending market and collect interest.
(Extended thinking: In the past, some people also discussed that Uniswap may lose its competitiveness if it starts to charge fees )
In the traditional world, free products are mostly accompanied by advertisements, but in the Web3 world, the cost of free products will also be subsidized through token circulation and financing.
Blur does not charge any fees. BLUR holders can change key parameters of the marketplace and lending protocol after 180 days, including fee parameters.
— Blur (@blur_io)May 2, 2023
