Decentralized peer-to-pool based NFT liquidity protocol, BendDAO is live on MEXC Global

The first of its kind decentralized peer-to-pool based NFT liquidity protocol, BendDAO is live on MEXC Global. Depositors earn interest by providing ETH liquidity to the lending pool while borrowers (NFT Holders) can borrow through the ETH lending pool, all while using NFTs as instant collateral. You can already trade BEND/USDT now on MEXC Global.

BendDAO Official Logo

Borrow ETH with NFT as collateral

NFTs are bundled into a separate token called BoundNFT using the BendDAO Protocol so that it can be used as a single unit of collateral by the borrowers.

Below are the details of the Collateral Ratio.

  • Initiate an instant NFT loan contract to borrow ETH from the pool
  • Maintain NFT collateral ratio by repaying ETH anytime

Earn Yields by Depositing ETH

Depositors and lenders both can easily deposit or withdraw ETH to the reserve pools. Liquidity Providers will earn yield by doing the same.

Perspective from the NFT holder’s point of view:
  • A 48-hour liquidation protection period

As the markets fluctuate and the aim is to avoid losses, borrowers will have a 48-hour liquidation protection period so they can repay the loan

  • Equal Rights for borrowers as well

As the borrowers are borrowing they will be eligible for all airdrops related to NFT Holdings. BendDAO will collect and in turn distribute airdrops to all bounfNFT holders as their NFTs are used in the collateral pool.

Additionally, borrowers can also claim rewards associated with NFT on different protocols while they still have NFTs in a pool with the flash loan feature.

  • Never be stolen

NFTs are converted into representing ERC721 boundNFTs through instant NFT loans and as these bounNFTs are untransferable, it completely eliminates the risk of being stolen. Positively, boundNFT maintains the same digital self-expression.

What’s in it for the ETH lenders?

  • Never go bankrupt

The NFT collateral which was provided by the borrower is locked on the platform. If the total debt ever exceeds the value of the NFT collateral, it goes through a liquidation through auction all while maintaining an auction price that cannot be lower than the total debt. Ensuring the lender’s principal is never lost.

What are the utilities of BEND Token?

BEND is the governance token of Bend DAO and its holders can stake BEND to get access to vote-escrowed BEND (veBEND) which mainly has two uses: Voting and Earning. veBEND has two main uses: Voting and Earning.

Voting

veBEND Holders have the option to participate in voting on which NFT can act as collateral which Bend protocol will support for borrowing ETH and providing liquidity.

It is bound to benefit all NFT holders as long as the supported NFT liquidity improved.

Earning

The stakers of BEND share 100% of the income generated in the protocol.

Start your crypto trading journey with MEXC Global Exchange


The content of this webpage is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives, and specific financial circumstances. Investment involves risk.

Please note that the information and data above are cited from third-party sources & whitepapers and do not represent MEXC. Please refer to direct sources for more details. This is not financial advice and does not constitute an offer or solicitation to offer or recommend any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives, and specific financial circumstances. Investment involves risk.

This disclaimer informs readers that the MEXC Creator’s content, views, thoughts, and opinions expressed in the articles belong solely to the creators and authors, and not to MEXC Global itself. MEXC Global doesn’t give any investment recommendations or advice.

Share your love to MEXC Global
Default image
MEXC Blog
We are your first stop for high quality projects - Buy, Sell & Trade Cryptocurrencies, NFTs, Margin, ETF, Futures, DeFi!
Articles: 426
Read Learn Watch