Ethereum NFT Lending Service BendDAO Aims to Solve Its Liquidity Crisis
BendDAO, which uses NFTs as collateral to loan Ethereum to borrowers, is in hot water. The project’s DAO—a community centered around a shared initiative that uses blockchain-based tokens for collective voting—must now decide whether to adopt a new policy on its liquidation thresholds after seeing its treasury all but drained.
According to Etherscan data, the DAO’s wallet has since received a small influx of funds and now holds roughly 425 ETH, but things aren’t exactly stable yet. One BendDAO co-founder, a Bored Ape Yacht Club NFT holder who goes by CodeInCoffee.eth, put the new proposal to community vote Monday in an effort to stabilize the DAO’s finances and restore confidence in the lending protocol. The way BendDAO currently works is by enabling users to deposit high-value NFTs into the service and receive up to 40% of the asset’s “floor price” as a loan in ETH. #Web3GranPappa #Web3Daos #togrp7 #mimexmime