DeFi lender Teller rolled out new BNPL feature for the most popular nonfungible tokens
Bloomberg reported the launch of a Buy Now Pay Later service from Teller Finance. Investors can now buy Bored Ape Yacht Club, Doodles, Meebits, Cool Cats and other popular NFTs in installments.
“Ape Now, Pay Later” payment option will be available on the Polygon blockchain network. With the help of Teller’s algorithmic credit risk protocol, DeFi digital asset lending and borrowing happens through an open order-book model.
The loans are community-driven. Thus, network users will borrow and lend funds directly to each other. Namely, borrowers will submit loan requests through Teller platform and lenders will provide funding on a case-by-case basis.
In the best traditions of DeFi, market participants will determine creditworthiness, the annual percentage rate and the loan terms. Lenders are encouraged by 30% APR.
The BNPL solution for the NFT market resembles traditional payment plans from Klarna or Affirm. Buyers would need to pay a minimum of 25% of the purchase upfront, and pay the rest in installments.
The move may be a life-saver for the lender amidst “crypto winter”. The NFT market has considerably shrunk since prices for crypto assets plunged. The sales levels are at their lowest in a year. Digital art and collectibles are not in demand, as rising rates and recession fears urge for safer investments.
For instance, the entry-level price for a Bored Ape Yacht Club NFT is below $100,000 for the first time since August 2021. It’s down 78% since late April, when Bored Apes started at nearly $429,000. NFT trading is far from active. The once popular Ape NFT characters were sold only 59 times in the last 7 days.