Reading Materials:

1. Paradigm Research on Blend:

Blend: Perpetual Lending With NFT Collateral - Paradigm

1. Blend Contract Address:

Uniqueness

1. no oracle
   1. there are no practical Oracle solutions by far even Chainlink is not a good idea tbh
   2. NFT oracle is particularly hard → NFT carries emotions unlike ERC20
2. perpetual: which means the loan can last forever, with no expiration date
   1. the traditional loan has an expired date → blend can be automatically extended as long as both sides thinks okay
3. peer-to-peer
   1. pool model is not capital efficient → a lot of idling ETH
   2. pool model facing liquidity risks → previous BendDAO jamed
4. no collateral limitation

How Blend Works

since it is a P2P protocol:

if Bob (lender), wants to lend his eth out to a certain NFT, he can propose the loan

if Alice has NFT, she just lists her NFT on the platform and asks for the loan (people will place loan bid under her assets offering loan)

→ Alice will choose the loan amount and agree on the interest rate (deal made)

as a lender → bob has the right to auction or refinancing the loan whenever he wants, there are many reasons that he may want to do it:

1. he needs his money back immediately
2. he thinks the current interest rate is too low and wants to cash out and do something else