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.
NFT as Collaterals to Borrow ETH
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
Deposit ETH to Earn Yields
Depositors/ lenders will be able to
- Deposit/withdraw ETH to the reserve pools
- Earn yields by providing liquidity
From the NFT holder's point of view
A 48-hour liquidation protection period
In order to avoid losses caused by the market fluctuations, the borrower will have a 48-hour liquidation protection period to repay the loan.
Same airdrop right for borrowers
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.
Never be stolen
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.