BendDAO
BendDAO is a decentralized peer-to-pool NFT borrowing protocol.
- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Token: BEND
- Tags: NFT Lending
- TVL: $146.8M (Rank #39)
- TVL Ranking by NFT Lending: #1
- Blockchain: Ethereum
- Chain TVL
- Ethereum: $146.79M
- Code reviewed by at least one experienced auditor; CertiK audited in April 2022
- Anonymous team reduces transparency
- No documented protocol hacks since launch
- Basic controls to prevent oracle price manipulation
- Core protocol launched recently in 2022; maturity less than six months increases technical risk as smart contracts are not battle-tested
- Top 10% by total value locked reduces risk
- Decentralized governance increases transparency
- At least one critical governance issue documented
- Low voting power concentration reduces risk
- No concerns identified
- Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole
- Beethoven X is a Balancer fork implemented on the Fantom chain
How BendDAO works
BendDAO is a decentralized lending platform that uses NFTs a collateral to loan ETH to borrowers. Users can deposit high-valued NFTs onto the platform and receive up to 40% of the asset's floor price as a loan in ETH. The floor price refers to the lowest sales price for a NFT collection. Users who deposit and lend out ETH earn high interest on those deposits. The protocol uses the same model as Aave's aTokens with its bendETH. bendETH is the interest-bearing token that is minted and burned upon deposit and withdrawal. Its value is pegged to the value of the corresponding deposited asset at a 1:1 ratio.
How BendDAO makes money
BendDAO charges a trading fee on each NFT's sales price (2%), a royalty fee of the sales price (0-10% paid to collection creator), and a flash loan fee (0.09% of the borrowed debt paid to Aave).
How you make money on BendDAO
You can earn yield by depositing ETH on the platform to be lent out to borrowers. BEND stakers (veBEND) also receive an admin fee that is porportional to the their veBEND balance relative to the toal veBEND supply. The admin fee represents 30% of the total interest income collected on all NFT loans. All fees are paid in ETH and distributed to veBEND holders each week.
