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BendDAO offers urgent changes to liquidated NFTs and refill coffers. | NFT Culture | NFT and Crypto Art Interviews and more

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Fear is spreading in the NFT community, as BendDAO, a cryptocurrency lending platform, is facing bankruptcy and 600+ NFTs may be placed in escrow. Some believe that large amounts of NFTs were sold to finance the company’s operations Others felt that the entire NFT market was rigged, and that NFT prices fell drastically after the announcement. Whatever happens, there are rumors that the NFT marketplace may soon shut down altogether.

BendDAO is an Ethereum based decentralized lending platform where borrowers can earn interest by pledging their digital assets (NFTs) as collateral. Bidders who lend funds can also earn interest by paying in Ether. This is a great opportunity for those interested in getting involved in the crypto space without having to deal with the issue of volatility until it happens. These liquidation events are disastrous for the project and have set back the NFT space somewhat.

Liquidation is happening due to falling prices of some blue chip assets. When this happens, the health factor of the assets backing the loan becomes too low to justify continuing the loan process. In BendDAO’s case, only 12.8% of their entire token supply remains. Because of this, borrowers who contract a loan through them cannot get their funds back. Currently, there are currently around 13,000 ETH outstanding, meaning the amount of debt owed to lenders exceeds the value of the assets pledged as security.

What happens next?

With no one bidding on defaulted NTFS, DAOs are forced to hold them with more debt than they are currently worth. The DAO must figure out how to get ETH back from this NTFS to repay the debt. To prevent this, BendDAO proposes changes to the lending protocol. One suggestion is that the auction period be reduced to four instead of forty-eight, which would reduce the risk of losing your ETH for two days. Another proposal is that the minimum opening bid could be set equal to the total amount outstanding on the NTFS, meaning that the difference between the minimum offer and the current price would be greater, encouraging more bids.

The result, like many lessons—Bend DAO teaches us how to prepare for bear markets during bullish times. While it feels safe to hold your NFTs during a bullish period, the models used by many NFT lending platforms are still very basic. Therefore, many in the NFT community are anticipating the upcoming sell-off. After all, who wouldn’t love a lot of high-quality NFTs?

About BendDAO

BendDAO is the best NFT liquidity protocol supporter Instant NFT-backed loans, Parallel listAnd NFT down payment. The seamless experience of down payment, borrowing and enrollment creates a perfect closed loop for users, a one-stop NFT liquidity solution.

NFT holders/sellers can instantly receive up to 40% of the floor value of the listing before it is sold. Instant liquidity is actually provided by instant NFT-backed lending. After the contract, the buyer will repay the loan with interest.

Existing borrowers can list collateral directly on BendDAO. The balance after deducting the loan along with interest will be transferred to the borrower (seller) after the agreement.



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