Original compilation: wzp, BlockBeats
Original compilation: wzp, BlockBeats
Recently, due to NFT market factors, the NFT mortgage lending agreement BendDAO has seen a large number of liquidation auctions, and the platform has experienced a serious liquidity crisis, and the capital utilization rate of BendDAO has exceeded 103%. In this regard, BendDAO urgently issued a new proposal BIP#9, intending to modify some protocol parameters to solve the liquidity crisis. Specifically, it includes adjusting the liquidation threshold to 70%, adjusting the auction cycle to 4 hours, adjusting the interest base rate to 20%, and the BendDAO community can vote on how to deal with bad debts.
NFT KOL Punk9059 analyzed the current situation of BendDAO’s liquidity shortage and its reasons today.BlockBeats organizes and translates it as follows:
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What does a shortage of deposits mean?
Those BendDAO depositors who lent money to others to leverage to buy NFTs will not be able to get their funds back. BendDAO lent approximately 15,000 ETH. At the same time, this also means that borrowers who mortgage NFT must pay almost 100% interest on the ETH they lend. The "debt" generated by NFT mortgage lending is rapidly rising
What does it mean for blue-chip NFT holders? The impact is that most NFTs that are liquidated and auctioned have no bids
13/17 MAYC
5/9 BAYC
8/11 CloneX
6/8 Doodles
(The number of NFTs in this series without bids / the number of NFTs with bids)
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12/17 MAYC
2/3 BAYC
7/8 CloneX
6/8 Doodles
Why did no bidders bid?
(a) BendDAO requires that the bid must be higher than the debt owed by the borrower and higher than 95% of the floor price of the series of NFTs in OpenSea
(b) Bidders must lock ETH for 48 hours during the public auction. In some cases, the NFT floor price will fall below the borrower's debt, and the bidder does not want to bear the risk of the NFT floor price falling within 48 hours.
liquidation auctionliquidation auctionfirst level title
So we'll have to wait and see how BendDAO works out
(a) Are they holding these blue chip NFTs and waiting for the floor price to recover?
(b) Or will they change the terms of the agreement (bidders don't need to bid more than the borrower's debt or lower bids as a percentage of the NFT floor price, which is currently 95%) to make it easier for BendDAO to sell NFTs to get back ETH funds?
(c) Can they find market makers willing to buy NFTs and sell them at a deep discount?
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