By Nathan Ferguson
BendDAO, a lending protocol, has no Wrapped Ether (wETH) tokens left within its contract. Presently, there are just fifteen wETH to recompense the lenders while it has to pay an estimated amount of up to 15,000 Ether (ETH) to the lenders. NFTStatistics.eth, a researcher, elaborated on the matter in a thread on Twitter, the borrowers of the non-fungible tokens (NFTs) on the venue should currently recompense nearly 100% interest over the ETH tokens borrowed by them.
BendDAO Contract just Contains 15 wETH to Pay to Its Lenders
Apart from that, the debt raised against the non-fungible tokens is also mounting. Moreover, the researcher mentioned that several of the non-fungible tokens have been utilized as collateral as well as defaulted and do not have any bids presently. In this respect, there are additional NFTs present on the alert list of the venue, which is near close to default as well as be put to an auction due to the declining floor prices of NFTs or the increasing debt as well as increased interest rates.
As per the co-founder of BendDAO, their group is operating on a plan to alter the factors within the venue that lends NFTs. The respective update is to have an implementation 24 hours following its approval via the voting procedure. During the emergency, a Twitter consumer availed the chance to make fun of the venue and noted that even BendDAO’s co-founder is near being liquidated by a lending venue of their own.
NFT Industry Goes through Huge Losses
In the previous week, it was speculated by the analysts that several NFT liquidations might be witnessed with a worth of up to $55M for the recovery of credits on BendDAO. In the words of DoubleQ, the founder of Double Studio, the respective scenario could turn out to be an extremely damaging event for the whole NFT market as well as the ecosystem of Bored Ape Yacht Club (BAYC) in particular.
In the meantime, no considerable progress is being seen in the wide world of NFTs. At this time, the 2 top NFT collections named Mutant Ape Yacht Club and Bored Ape Yacht Club’s floor prices are down by a significant percentage after having been hit recently. In addition to this, an exclusively introduced NFT marketplace called GameStop has also suffered a nosedive. As a result, the regular fee revenue of the venue has plunged below $4,000.