Cryptocurrency A new one is being added to the platforms that have problems in the markets. NFT based borrowing and lending platform BendDAOhas been experiencing a major liquidity problem lately.
The other day, BendDAO developers announced their new proposals on social media channels to make the platform workable again. At the same time, the project has only 15 cash on hand that it can pay out to creditors. ETH turned out to be.
Approximately 15,000 ETH has been borrowed using the mechanism. Wanting to save the project from a liquidity crisis, BendDAO developers suggested lowering the liquidation threshold for collateral from 85% to 70%.
As an additional measure, it is also on the agenda to reduce the auction time of NFTs on the platform from 48 hours to 4 hours. In addition, it is voiced by the developers that the loan interests are reduced, unreliable debts are covered by the platform and the income control is in the hands of the platform.
With NFT prices falling considerably due to bear market conditions, interest rates on even reputable collections on debt platforms have reached abnormal levels. Many NFTs are in danger of liquidation. Since the interest rates of “collateralized” NFTs have risen up to 100%, some users find it more reasonable to give up the NFT they have left as collateral instead of paying their debts. The BendDAO platform faced a liquidity crisis for this reason.
BendDAO was seen as a very reliable NFT secured borrowing platform until the liquidity crisis. The measures proposed by the developers received 99% approval from the community.
BendDAO platform token BENDhas lost more than 35% in the past 1 week and is currently trading at $0.005.
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