Bend DAO — a decentralized NFT liquidity protocol, based on a peer-to-peer pool. Depositors provide ETH liquidity to the loan pool to earn interest, while borrowers can instantly borrow ETH through the loan pool, using NFTs as collateral.
About Bend DAO
The Bend protocol allows NFT assets to be pooled and converted into ERC721, representing linked NFTs to realize NFT credits.
Other features:
| 1 | Borrowers (NFT holders) will combine the NFT into one single token (boundNFT) via the Bend protocol to function as a single unit of collateral. |
| 2 | Initiate an instant NFT lending contract to borrow ETH from the pool. |
| 3 | Maintain your NFT collateral ratio by redeeming ETH at any time. Return the NFT when you pay off the NFT loan. |
To avoid losses, caused by market fluctuations, the borrower will have a 48-hour liquidation protection period to repay the loan.
The NFTs will be converted into ERC721 pegged NFTs through instant NFT credits. BoundNFT is non-transferable to avoid the risk of theft. On the other hand, boundNFT has the same digital self-expression that can be used on Web2 social media platforms that support the NFT avatar. The borrower's NFT collateral is locked on the platform. Once the total debt exceeds the value of the collateral, the collateral is liquidated at auction and the auction price cannot be lower than the total debt. Thus, the main creditor will not be lost.
More about defi app
BEND holders can vote on which NFTs they can support to borrow ETH and provide liquidity. This will benefit all NFT holders if the supported liquidity of the NFT improves. 100% of the protocol revenue will go to veBEND holders who stake on BEND. To avoid unnecessary GAS costs, eligible users can claim BEND for a specified period of time. All unclaimed BEND tokens will be redistributed to the DAO treasury.