NFT lending platform BendDAO initiates vote to alter protocol

ambcrypto.com:

Ripples of the credit crisis that affected several crypto-exchanges are now being felt in the NFT space. Popular NFT-based lending platform BendDAO has now initiated a vote to approve emergency changes. This, in a bid to avert what experts are describing as a “death spiral” for the NFT market.

— CodeInCoffee.eth (@CodeInCoffee) August 22, 2022

In fact, an alarming statistic recently obtained from Etherscan is that the BendDAO contract has run out of Wrapped Ether, leaving 0 ETH for payment to lenders.

In the proposal, BendDAO’s Co-founder who goes by the pseudonym CodeInCoffee said,

“We are sorry that we underestimated how illiquid NFTs could be in a bear market when setting the initial parameters. In the past several days, we got tons of feedback and suggestions from the community. After a comprehensive review and discussion, it’s time to make a proposal to help ETH depositors to build confidence.”

Here are the short-term changes proposed for the protocol 0

The BendDAO protocol is using Snapshot, an off-chain voting system, to arrive at a consensus. As per the rules on the Snapshot, 47 million veBEND i.e 20% of the total supply would constitute a quorum. A 75% approval would make the proposed changes possible.

In addition to changes to the protocol, BendDAO developers revealed user interface (UI) improvements. These include a section on the BendDAO auction page, one where the number of floating bad debts in ETH would be displayed. This, along with information about interest total generated for veBend holders and ETH depositors.

Bend