What Is BendDAO?
BendDAO is a Peer-to-Pool NFT lending protocol that utilizes a single, global liquidity pool for lending and borrowing. Lenders deposit ETH into the contract and earn interest while it is in the pool.
Background
A group of pseudonymous founders founded BendDAO in 2022.
How It Works
BendDAO supports 7 “top-tier” collections, including Bored Ape Yacht Club, CryptoPunks, Mutant Ape Yacht Club, Space Doodles, Doodles, Azuki & Clone X. Each loan has a Health Factor. If the floor price of an NFT collection drops low enough to make the Health Factor fall below 1, the loan is liquidated. The NFT is then automatically put up for a public auction to recover the funds.
Lenders also receive $BEND governance tokens as an incentive. Borrowers can deposit NFTs as collateral and borrow up to 30-40% of the NFT’s floor price in ETH.
Key Takeaways
- Peer-to-Pool NFT lending: BendDAO is a lending protocol that operates on a peer-to-pool model, where lenders deposit ETH into a global liquidity pool and earn interest.
- Supported NFT collections: BendDAO supports seven “top-tier” NFT collections, including Bored Ape Yacht Club, CryptoPunks, Mutant Ape Yacht Club, Space Doodles, Doodles, Azuki, and Clone X.
- Health Factor and liquidation: Each loan in BendDAO has a Health Factor, and if the floor price of an NFT collection drops low enough to make the Health Factor fall below 1, the loan is liquidated, and the NFT is put up for a public auction to recover the funds.
- $BEND governance tokens: Lenders in BendDAO receive $BEND governance tokens as an incentive for participating in the protocol.
- NFT collateral and borrowing: Borrowers can deposit NFTs as collateral and borrow up to 30-40% of the NFT’s floor price in ETH.
