12.5 left in smart contract of BendDAO NFT secured borrowing protocol WET Paying about 15,000 ETH to creditors. This was written by a researcher under the pseudonym NFTStatistics.eth.

user registeredThe contract was vacated within 48 hours.

According to NFTStatistics.eth, the situation means that borrowers on the platform must pay 100% interest on the funds they receive. Also, debt is growing against collateralized collectible tokens.

In this regard, the list of NFTs auctioned by the protocol is expanding due to the impending default. This has been facilitated by the decline in prices of the underlying asset on trading platforms.

At the same time, there are no bids for most auctions. According to the expert, buyers are afraid of the prices that the platform is charging and the need to block ETH for 48 hours to open a position.

5) What does this mean for my NFTs?

It depends. Currently, most defaulting NFTs have no bids

13/17 MAY
5/9 Aries
8/11 CloneX
6/8 Scribbles

total number of NFTs for no-bid auction/total NFTs for auction (i.e. there are bids at 4 MAYCs for example)

(3/9)

— NFTStatistics.eth (@punk9059) 21 August 2022

NFTStatistics.eth suggested that the platform team expects the market to recover and quotes to rise, or plans to sell assets at a discount to some market makers to gain liquidity.

“Currently, these NFTs are auctioned by BendDAO and are not listed on the exchange. Why? Why? Because nobody bets on them. The DAO has stockpiled them and is holding them back,” he said.

The co-founder of BendDAO, CodeInCoffee.eth, explained that the team is working on a proposal to change the parameters of the lending platform. Changes will take effect 24 hours after posting on the forum.

Writing a proposal to improve the protocol, including some parameter changes, will be posted on the forum today and will take effect 24 hours after the vote, we hope WAGMI.

— CodeInCoffee.eth (@CodeInCoffee) 22 August 2022

He noted that only bad debts of around 278 ETH led to the contract being discharged. However, the co-founder of the platform acknowledged that it is necessary to take action earlier.

In assessing the proposed changes, Cirrus wrote that reducing trading to 4 hours would “definitely increase the liquidity of auctions” and that the lower liquidation threshold would prevent bad debts from re-accumulating.

Recall that in July, the trading volume in the secondary NFT market fell 26% month on month to $647.2 million.

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