BendDAO is the first decentralized peer-to-pool based NFT liquidity protocol. Depositors provide ETH liquidity to the lending pool to earn interest, while borrowers are able to borrow ETH through the lending pool using NFTs as collateral instantly.
Bend protocol enables NFT assets to be pooled and converted into representing ERC721 boundNFTs to realize NFT loans.
Borrowers (NFT holders) will bundle NFT into one separate token (boundNFT) through BendDAO Protocol in order to function as a single unit of collateral. Details of the Collateral Ratio.
Details are listed as follows:
- Initiate an instant NFT loan contract to borrow ETH from the pool
- Maintain NFT collateral ratio by repaying ETH anytime
- Get back the NFT when paying off the NFT loan
Depositors/ lenders will be able to
- Deposit/withdraw ETH to the reserve pools
- Earn yields by providing liquidity
In order to avoid losses caused by the market fluctuations, the borrower will have a 48-hour liquidation protection period to repay the loan.
Borrowers will be eligible for all related NFT holder airdrops. BendDAO will collect and distribute the airdrops to boundNFT holders when their NFTs are in the collateral pool.
Furthermore, borrowers can claim NFT rewards on other protocols while having NFTs still in a collateral pool with the Flashloan feature.
NFTs will be converted into representing ERC721 boundNFTs through instant NFT loans. boundNFT is untransferable avoiding the risk of theft. On the other side, boundNFT has the same digital self-expression which can be used on Web2 social media platforms that support the NFT avatar.
The borrower's NFT collateral is locked on the platform. After the total debt exceeds the value of the collateral, the collateral is liquidated through auction, and the auction price cannot be lower than the total debt. So the lender's principal will not be lost.
{% hint style="info" %} This Portal links to the key resources on BendDAO to understand the fundamentals of the Protocol. Please join the discussion on BendDAO community Discord server; our team and members of the community look forward to helping you build on top of BendDAO. {% endhint %}