HomeAltcoinBendDAO in Insolvency Crisis, Ethereum Reserves Depleted.

BendDAO in Insolvency Crisis, Ethereum Reserves Depleted.

-

Investor hysteria is occurring around the so-called “NFT” protocol known as BendDAO. Over the weekend, its Ethereum holdings were depleted, making it impossible for ETH lenders to get their investments back.

Through the NFT-specific lending protocol BendDAO, NFT owners may deposit their assets as security to borrow ETH. Users may also deposit ETH to get yield.

Borrowers are discouraged from paying off their loans because to BendDAO’s high interest rates. As a result, several of them went into default and their NFTs were liquidated, which led to a downward cycle.

The platform demands that the offer be more than the debt of the defaulting party, although the latter are auctioned but attract few bids. This discourages potential purchasers and leaves a liquidity gap.

When the market is already extremely unstable, the forced liquidation of several well-known NFTs might have an effect on the market as a whole.

As a result, BendDAO’s operational model suffered a lack of confidence, which prompted consumers to try to get their money back before it filed for bankruptcy.

Leave a Reply

LATEST POSTS

Solana’s Phantom Wallet Opens to Ethereum and Polygon.

In the near future, the Ethereum (ETH) and Polygon (MATIC) blockchains will be added to the Phantom digital wallet, which was previously restricted to the...

Why is the SOL falling? – Bitcoin, Ethereum & Co on the rise.

Solana is still experiencing problems related to the FTX issue, and as a result, it is the only top 20 cryptocurrency with a price that...

Customers go from RippleNet to ODL as a result of Ripple new business.

In the meanwhile, Ripple has established a reputation among financial institutions and payment service providers in the area of cross-border payments. It is now necessary...

FTX permanently abandons SBF.

On November 11, former billionaire Sam Bankman-Fried (SBF) resigned from his position with FTX. He had been CEO up to that point, and given what...

Follow us

0FansLike
3,601FollowersFollow
0SubscribersSubscribe

Most Popular

spot_img
%d bloggers like this: