NFT Lending Fund
Ethereum Fund Only
Blur Lending Pool (Arbitra’s First Public Strategy)
The Blur Lending Pool is Arbitra’s first publicly available investment product, a blockchain-native fund engineered to capture yield from the fast-growing NFT lending market on Blur.io.
This strategy deploys investor capital into a proprietary, automated software system that interacts directly with Blur’s peer-to-peer lending protocol. The system identifies high-value lending opportunities, executes them in real time, and continuously rotates capital to maximize efficiency and returns.
Designed as a low-risk, medium-reward strategy, the pool targets consistent performance by focusing on collateralized lending dynamics and well-calibrated liquidation conditions. It offers a compelling entry point for investors seeking dependable yield in a volatile market.
Unlike traditional hedge fund vehicles, the Blur Lending Pool is fully on-chain, transparent, and permissionless. There are no minimum deposit requirements, and investors benefit from instant liquidity and real-time profit tracking.
As Arbitra’s flagship strategy, this pool establishes the foundation for a broader suite of algorithmically driven investment vehicles — built to democratize access to advanced trading infrastructure and institutional-grade returns.
Strategy Summary
The Blur Lending Pool operates by deploying investor capital into a proprietary, automated system that interacts directly with Blur’s NFT lending protocol. The strategy focuses exclusively on issuing secured loans to borrowers against blue-chip NFT collateral, earning yield through interest payments over the duration of each loan.
Our software continuously monitors lending opportunities in real time, assessing loan-to-value ratios, historical repayment data, asset quality, and broader market volatility. When a lending opportunity meets strict predefined risk criteria, capital is automatically allocated to capture the interest yield with minimal exposure.
The system is engineered for capital efficiency, ensuring idle funds are promptly rotated into the most optimal lending opportunities available. By removing the manual overhead and emotional bias of traditional lending, the strategy offers a disciplined, low-risk approach to yield generation.
This pool does not engage in liquidation or NFT acquisition; it is designed purely to earn interest by providing stable, secured liquidity to high-volume borrowers. This makes it a reliable, low-volatility option for investors seeking passive yield in a fast-moving ecosystem.
Why Blur.io?
Blur.io is currently the leading NFT trading and lending platform, designed for professional-grade users seeking speed, liquidity, and advanced tools. Its lending protocol, known as Blend, has rapidly become the most widely used system for NFT-collateralized loans, introducing a peer-to-peer structure that enables flexible, high-frequency lending at scale.
How Blur Lending Works
Here’s a simplified view of how Blur’s lending mechanism operates:
Lenders Make Offers: Arbitra’s software generates and submits loan offers on Blur for specific NFT collections. Each offer includes the amount of ETH available to lend and the interest rate.
Borrowers Accept Offers: NFT holders browsing Blur can instantly accept any active loan offer by using their NFT as collateral. Once accepted, the loan is automatically executed via smart contract. The NFT is transferred into a custodial wallet owned by blur so nor the lender or borrow can access it until the loan is repaid.
Loan Settlement: ETH is transferred from Arbitra’s pool to the borrower, and the NFT is held in escrow by the Blend contract until the loan is payed back.
Repayment: If the borrower repays the loan plus interest, they regain custody of their NFT, and the Arbitra pool collects the interest as yield.
Optional Foreclosure: If a borrower fails to repay, the lender has the option to foreclose and claim the NFT. However, Arbitra’s current strategy does not pursue foreclosure or liquidation paths it is strictly focused on high-quality, repaid lending activity.
Why This Matters for Arbitra
Blur’s structure is highly advantageous for the Arbitra lending strategy:
Lender-Centric Control: Arbitra sets all lending terms, from principal to APY, enabling strict risk management and optimized returns.
Passive Deal Flow: High borrower demand on Blur ensures loan offers are frequently accepted, keeping capital actively deployed.
Transparent Risk Assessment: Offers are only made on select NFT collections with deep liquidity and strong historical performance.
Risk Management
While the Blur Lending Pool is designed to deliver attractive yield, its core priority is capital preservation. Our strategy is structured around strict risk controls, ensuring that lending activity remains low-volatility, transparent, and algorithmically managed at all times.
Fund Security & Safety
Arbitra prioritizes the security of investor capital at every level of system architecture. Once deployed to a dedicated server, all private keys used for signing transactions will be securely stored and managed using AWS Secrets Manager, an enterprise-grade solution designed to prevent unauthorized access and ensure cryptographic integrity. The Blur Lending Pool operates through a fresh, isolated wallet with no prior transaction history or external connections, other than its integration with Blur.io. This wallet is used exclusively for executing loan offers, reducing the risk of cross-platform exposure and minimizing potential attack vectors. These safeguards form part of a broader commitment to operational security, risk mitigation, and investor trust.
Performance & Backtesting
The Blur Lending Pool has been tested in live market conditions with real capital to validate both the strategy’s performance and the reliability of its underlying infrastructure. Across two separate deployment periods, the system consistently demonstrated strong capital efficiency, minimal idle time, and disciplined yield generation.
Initial Deployment (2 Weeks)
Starting Capital: 2.5 ETH
Ending Capital: 2.5173 ETH
Net ROI: 0.6925%
Annualized Return (APY): 18.05%
Loans Executed: 9
Capital Utilization: 96%
Idle Time: < 8 hours
Extended Deployment (1 Month)
Average APY (incl. outlier): 80.98%
Average APY (excl. outlier): 15.34%
Highest APY: 1000%
Lowest APY: 15%
Monthly Return: 1.639%
Annualized Yearly Return: 19.668%
Capital Utilization: 99%
Idle Time: 12 hours total
All results were achieved under live Blur.io conditions, with the system autonomously identifying, pricing, and executing loans in real time. Throughout both periods, capital was deployed responsibly under strict risk parameters, with no exposure to liquidations.
Interpretation These tests confirm the pool’s ability to deliver reliable, risk-managed returns with exceptionally high utilization. The consistency of borrower demand on Blur, combined with the system’s low downtime, indicates strong scalability potential. With further optimization and additional capital, the pool is well-positioned to expand while maintaining its focus on efficiency and capital protection.
Investor Mechanics
The Blur Lending Pool is designed to offer transparent, low-risk exposure to NFT lending returns. While the underlying strategy is fully automated and on-chain, investor interactions will initially be handled off-chain as Arbitra finalizes the launch of its user interface and smart contract infrastructure.
How to Invest
For this initial capital raise, investors will deposit ETH directly into the Blur Lending Pool via a secure, verified wallet address provided by Arbitra. Upon receipt, funds will be deployed by our automated lending system into selected loan opportunities on Blur.io.
Deposits are confirmed manually, and balances will be updated on a private ledger until our on-chain interface is live.
How Returns Are Generated
Interest is earned when borrowers on Blur accept loan offers issued by Arbitra’s system. Once repaid, both the principal and interest are returned to the pool and tracked internally against each investor’s allocation. Returns compound automatically as capital is re-deployed into new loans.
There is no exposure to NFT volatility or liquidation events — this strategy focuses purely on interest income from completed loans.
Withdrawals
In addition to standard ETH withdrawals, investors may choose to have their profits converted into a stablecoin of their choice (e.g., USDC, USDT, DAI). This allows for greater control over portfolio exposure and risk management.
It’s important to note that stablecoin withdrawals are only available if profits have already been converted. Investors cannot request a withdrawal directly in stablecoin without first selecting the conversion option. Profit conversion is handled upon each loan repayment, not retroactively, and applies only to the investor’s share of profit — not their or the funds principal capital.
Each conversion request incurs a small, one-time fee to cover execution and transaction costs. This service is entirely optional and offered to provide flexible profit handling without requiring investors to fully exit the pool.
On-Chain Interface (Coming Soon)
Our fully on-chain investment dashboard — including live tracking, automated deposits, and self-service withdrawals — is scheduled for launch within the next 3 months. Investors will be notified as soon as it goes live and invited to migrate to the smart contract-powered interface, which will provide a real-time view of balances, earnings, and pool performance.
Given the current manual process and short-term limitations, this pool is best suited for investors with a medium- to long-term horizon who are comfortable participating in the early stages of Arbitra’s platform development.
Fees
To support continued development and operation of the Blur Lending Pool, Arbitra applies both a performance fee and an annualized AUM (Assets Under Management) fee. These fees are designed to ensure sustainable platform growth while maintaining alignment with investor outcomes.
Performance Fee: 30%, applied only to realized gains
AUM Fee: 0.5%, calculated on total capital deposited, prorated daily
Withdrawal Fee: None
Deposit Fee: None
Fees will be transparently recorded and will be deducted prior to profit distribution via our website. Investors will receive regular reporting on performance, fees, and net returns in our monthly investor calls.
Legal & Compliance Notes
The Blur Lending Pool is an early-stage, blockchain-native investment strategy that operates within the decentralized finance (DeFi) ecosystem. While we strive to provide transparency, risk-managed exposure, and a high level of operational integrity, it is important for all participants to understand the scope of their involvement and the legal considerations that apply.
No Financial Advice
Nothing presented in this document constitutes financial, legal, or investment advice. All information is provided for informational purposes only. Participants are encouraged to conduct independent research and consult with licensed financial or legal advisors before engaging in any investment activity.
Jurisdictional Restrictions
Participation in the Blur Lending Pool is limited to individuals and entities located in jurisdictions where such activity is legally permitted. It is the sole responsibility of each investor to ensure compliance with local laws, regulations, and any applicable tax obligations. Arbitra does not accept or solicit users from restricted or sanctioned regions.
Custody & Control
Arbitra does not serve as a custodian or fiduciary of investor funds. During the initial rollout period, deposits will be manually tracked and deployed into Blur.io’s on-chain lending infrastructure via Arbitra’s proprietary software. Investors retain full responsibility for understanding how their capital is being utilized.
Risk Acknowledgment
By participating in the Blur Lending Pool, investors acknowledge that they understand and accept the risks involved, including but not limited to:
Smart contract vulnerabilities
Third-party protocol changes (e.g., Blur.io updates or downtime)
Capital lockup during active loan periods
Fluctuating interest rates and market volatility
Delays in manual processing during the pre-launch phase
Capital is not insured or guaranteed. Past performance, including backtested or historical returns, does not guarantee future results.
No Token or Security Issuance
Participation in the pool does not constitute the purchase of a security, token offering, or equity interest in Arbitra or any affiliated entity. The pool does not issue tokens, governance rights, or passive income claims under any legal definition of securities law. Participation is limited to yield exposure through algorithmic NFT lending activity.
User Verification & Exclusions
Arbitra reserves the right to request verification of investor identity and jurisdiction, and may deny access to the pool at any time to maintain legal compliance. This includes, but is not limited to, enforcement of AML (Anti-Money Laundering) and KYC (Know Your Customer) standards if required under future regulatory frameworks.
Manual Processing Notice
Until Arbitra’s on-chain investor interface is fully launched, all deposits and withdrawals will be processed manually. While we strive to honor all requests within 24 hours, minor delays may occur during periods of high activity. Investors acknowledge that participation during this early stage involves operational trust in Arbitra’s handling of off-chain investor accounting.
Last Updated: 25/05/2025
This section is subject to updates as legal and regulatory standards evolve. Any changes to these terms will be communicated in advance to all participating investors.
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