NFT Lending Platform Blend Sparks Concerns Over Ecosystem Liquidity

“Unchanged, the prevailing incentive design will likely lead to bad outcomes for borrowers such as mass defaults or liquidations of high-risk lends, flush NFTs into the hands of point farmers, and in consequence, may lead to much higher market volatility,” said Gabler. “Existing peer-to-peer manners tend to be more borrower-friendly and lead to healthier loan markets.”