What is Blur NFT Marketplace?

Blur, launched in October 2022 by Pacman (also behind the layer 2 protocol Blast), is an NFT marketplace tailored for pro traders. It operates on Ethereum’s mainnet and Blast, offering features like batch transactions and floor-sweeping, making high-volume trades more efficient.

By integrating with multiple marketplaces, Blur boosts liquidity and reduces fragmentation across collections. Its zero transaction fees and flexible 0.5% royalty model attract traders focused on maximizing returns in a fast-moving market.

While Blur initially saw daily trading volumes hit $100 million and has a total of $7.4 billion, it now averages around $3 million as the broader NFT market has slowed. Despite this, Blur remains a key player, supported by its $BLUR token and continued reward incentives for users.

What is Blend on Blur?

Blend, built into the Blur marketplace, is a peer-to-peer NFT lending protocol that lets users borrow against NFTs without relying on oracles or fixed loan expiries. Loans stay open until the borrower repays or the collateral is liquidated through a Dutch auction. The market sets interest rates and loan-to-value (LTV) ratios, giving borrowers and lenders more flexibility.

Take Azuki NFTs as an example. Right now, there are 494 active loans on Azukis with LTVs ranging from 82% to over 100%. Azuki #1508, for instance, has a loan of 5.35 ETH, a 100.46% LTV, and an APY of 167.9%. 

Lenders can exit by starting a refinancing auction, and if no new lender steps in, the borrower’s NFT is liquidated. This approach skips the need for fixed terms or price oracles, making it a more flexible and efficient way to manage NFT-backed loans.

Blur and Blend Fees

Blur keeps it simple with zero transaction fees, making it the most capital-efficient platform for NFT traders. Sellers can also adjust royalties, with a suggested minimum of 0.5%, giving more flexibility compared to platforms with fixed fees.

When using Blend,  there are no fixed fees tied to borrowing or lending. However, in the case of liquidation, lenders may take possession of the NFT, and borrowers can face liquidation penalties depending on auction outcomes. 

While there are no marketplace fees, keep in mind that Ethereum gas fees still apply. 

Blur Tokenomics

The $BLUR token follows a structure similar to UNI, with 3 billion tokens minted at launch and set to be distributed over 4 to 5 years. Blur’s tokenomics focus on rewarding the community, contributors, and investors through a structured vesting schedule. Here’s the rundown:

• Total Supply: 3 billion $BLUR, minted at genesis.

Allocation:

• 51% to the Blur community (1.53 billion BLUR)
• 29% to core contributors (867.6 million BLUR) with 4-year vesting
• 19% to investors (565.6 million BLUR) with 4-year vesting
• 1% to advisors (36.7 million BLUR) with 4-5 year vesting

Community Treasury:

• 12% (360 million BLUR) immediately claimable by NFT traders, historical users, and creators.
• 39% of total supply available for grants, initiatives, and incentives, with 10% (300 million BLUR) reserved for the next incentive release.

The vesting schedules for the allocations will be at 40% in Year 1, 30% in Year 2, 20% in Year 3 and 10% in Year 4. Core contributors and advisors follow a similar vesting pattern, with additional cliffs for transfers.

Is Blur Better than OpenSea?

It depends on your trading style. Blur is perfect for those who are comfortable with on-chain trading and want the most capital-efficient marketplace. With zero fees, flexible royalties, and deep liquidity, it’s the go-to for buying expensive NFTs like Pudgy Penguins, Azukis, or Miladys while minimizing costs.

OpenSea, on the other hand, is more beginner-friendly, think of it like the "Coinbase" of NFTs. It’s simple to use but expensive (also like Coinbase), charging a 2.5% fee on secondary sales and another 2.5% to 10% for creators on mints. 

These high fees have caused volumes to drop significantly, giving Blur the edge for more cost-conscious, experienced traders.

Bottom Line

Blur is built for serious NFT traders, offering zero fees, flexible royalties, and solid liquidity for big trades. Its Blend feature also lets you borrow against your NFTs without the usual rigid terms, making it a standout for those looking to earn yield on high-value collections like Punks.

Overall, Blur is the go-to choice choice for traders focused on cutting costs and staying competitive in a challenging market. If trade execution and flexibility matter, Blur’s got you covered.