BendDAO

Lending

BendDAO is a decentralized peer-to-pool NFT borrowing protocol.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
BendDAO is the first NFT liquidity protocol that supports NFT-backed loans.
What we like less
The team is anonymous and the protocol treasury is only controlled by a 3/5 multisig.
What it means for you
Offers you an amazing platform to take loans using your illliquid NFTs as collateral, as well as generate high yield by lending ETH to borrowers.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: BEND
  • Tags: Lending
Key Metrics
  • TVL: $59.6M (Rank #85)
  • TVL Ranking by Lending: #0
  • Blockchain: Ethereum
  • Chain TVL
    • Ethereum: $59.64M
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; CertiK audited in April 2022
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • At least one critical governance issue documented
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Solid controls to prevent oracle price manipulation
  • Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole
  • Basic controls in place to prevent risky borrowing
  • Basic mechanisms in place to incentivize liquidations
  • Basic method to accrue protocol reserves
  • Beethoven X is a Balancer fork implemented on the Fantom chain
Things to know about BendDAO

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.