Liquidity is one of the most important factors that determines the NFT’s value; therefore, there were some projects launched recently to solve this problem and BendDAO is one of them.
What is BendDAO?
BendDAO is the first decentralized peer-to-pool based NFT liquidity protocol that allows NFT holders to deposit their assets as collateral to borrow ETH. It offers a seamless experience of down payment, borrowing, and listing, aiming to become a complete NFT liquidity solution.
Instead of fragmenting NFTs like other projects, BendDAO is the first one in which users can use NFT as collateral to immediately borrow ETH through the loan pool. BendDAO mainly supports NFT collections that are considered bluechips such as BAYC, MAYC, Azuki, CryptoPunks, etc. to ensure their value and liquidity.
Highlights of BendDAO
BendDAO provides products to help NFT holders improve NFT liquidity instead of just holding NFTs. That combines with other products to create a vicious cycle, thereby helping users to maximize profits. BendDAO currently offers 3 main products:
NFT-backed Loan: NFT holders can use NFT as collateral to borrow ETH through a lending pool; depositors provide ETH liquidity to earn interest. This is the main product of BendDAO that can help users to trade NFTs with leverages.
Collateral Listing: NFT owners or sellers can choose to receive up to 40% of the floor price upon listing for sale. This instant liquidity is supported by the Instant NFT-backed Loan feature. Buyer will pay off the loan including interests after the deal.
Down Payment: Buyers can purchase bluechip NFTs from major NFT marketplaces with only a minimum down payment of 60% depending on the actual price while initiating a flash loan from AAVE to cover the remainder. The borrowed amount of the flash loan will be repaid through the instant NFT-backed loan on BendDAO. The buyer then automatically becomes the borrower.
Benefits that BendDAO brings to the NFT community:
Equal rights for borrowers: Owners of bluechip NFT collections will regularly receive airdrops. BendDAO will collect and in turn distribute airdrops to borrowers as their NFTs are used in the collateral pool.
Never be stolen: NFTs will be converted to ERC-721 boundNFTs representing NFT loans. These boundNFTs are transferable so they cannot be stolen. Moreover, boundNFT can also be used on Web2 social platforms that support NFT avatars.
48-Hour Liquidation Protection: The NFT market often suffers from liquidity problems that lead to price fluctuations. So, BendDAO has a mechanism that allows users to repay their loans within 48 hours to avoid losses.
Benefits of holding BEND Tokens:
BEND is the governance token of BendDAO and users can stake BEND to receive veBEND. veBEND holders have the following benefits:
- Vote and decide on which NFT can act as collateral. Currently, BendDAO supports 7 NFT bluechip projects: Mutant Ape YC, Cool Cats, Doodles, CLONE X, Azuki, World of Women, and CyberKongz.
- Share 100% of the income generated in the protocol.
- Participate in other decisions of the protocol in the future.
Development team, investors, and partners
Development team: Remain anonymously.
Investors: Tokens are available to anyone at the same price in a fair launch and thereby having no investors.
Partners: Not many partners have been announced yet. The project recently partnered with Chainlink Keeper to help decentralize automation of fee distribution.
Roadmaps & Updates
The project has announced the roadmap for 2022:
Q1 2022 (completed):
- BEND Token Airdrop
- Fair Launch IFO
- Security Audit
- Mainnet Launch
- DAO Governance & Voting
- More Bluechip NFTs Online Proposals
Q2 2022 (completed):
- DAO Governance Improvement Proposals
- Ecosystem Building Proposals
- Down Payment Buy NFT Proposals
- Bluechip NFT Leverage Trading Platform
Q3 2022:
- P2P NFT Lending Proposals
- More Bluechip NFTs Online Proposals
Q4 2022:
- NFT Renting Proposals
- Permissionless Pool Proposals
- Universal Web3 Data Liquidity
- BEND Token
- Key Metrics BEND token
- Token Name: BendDAO Token
- Ticker: BEND
- Blockchain: Ethereum
- Token Standard: ERC-20
- Token Type: Governance
- Total Supply: 10,000,000,000 BEND
- Circulating Supply: Updating
BEND Token Allocation
BEND tokens are distributed as follows:
- Developer Team: 21%
- Initial Fair-launch Offering: 10%
- Treasury Reserve: 21%
- Airdrop: 5%
- Uniswap LP Incentive: 3%
- Lend/Borrow Incentive: 40%
BEND Token Sale:
- 1,000,000,000 (10%) BEND will be sold to the community in the form of fair launch
- Anyone can buy
- 1 ETH = 333,333 BEND.
BEND Supply Plan:
How to own BEND Token
There are several ways to earn BEND Token:
- Join IFO (closed)
- Airdrops
- Buy on exchanges
- Join lending & borrowing on BendDAO platform to receive incentives
- Farming on Uniswap pool
BEND exchanges
BEND can be traded on both DEX and CEX exchanges such as Uniswap V2 and V3, MEXC, BKEX, Hotbit, etc.
More info about BendDAO:
- Website: https://www.benddao.xyz/
- Twitter: https://twitter.com/benddao
- Medium: https://medium.com/@BendDAO
- Discord: https://discord.com/invite/benddao
- Github: https://github.com/BendDAO
- Governance forum: https://governance.benddao.xyz/