Lending protocol BendDAO no longer has sufficient Wrapped Ether (wETH) in the contract. During the time of writing, the contract has only 15 WETH to pay for lenders, as well as an believed 15,000 Ether (ETH) left to become compensated to lenders.
Investigator NFTStatistics.eth dissected the problem inside a Twitter thread, highlighting that NFT borrowers within the platform should now pay 100% interest around the ETH they lent. Additionally, your debt positioned from the NFTs can also be increasing.
In addition, the investigator noted that lots of the NFTs which have been utilized as collateral and defaulted presently don’t have any bids. With regards to this, there are other NFTs around the platform’s alert list, that are NFTs going to default and are available to auction due to the falling NFT floor prices or rising debt and-rates of interest.
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When you were asleep the BendDAO bank run finally happened
15 wETH ($25,081) left within the wallet which had 18,000 ETH ($29,160,000) inside it just 48 hrs ago
Still 14,500 wETH owed to lenders….
Absolute shitshow pic.twitter.com/RKkdqVAVIf
— Cirrus (@CirrusNFT) August 21, 2022
Based on the BendDAO co-founder, their team is working on the proposal to alter parameters inside the NFT lending platform. The update will require effect 24 hrs after it will get approved with the voting process.
Among the crisis, a Twitter user required the chance to poke fun in the platform, pointing out that the co-founding father of BendDAO can also be near getting liquidated by their very own lending platform.
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A week ago, analysts speculated that there can be an incoming number of NFT liquidations worth $55 million to recuperate loans on BendDAO. Based on Double Studio founder DoubleQ, the problem can lead to a “dying spiral” for the whole NFT market and also the Bored Ape Yacht Club (BAYC) ecosystem.
Meanwhile, the broader NFT world isn’t doing much better. Right now, as floor prices of BAYC and Mutant Ape Yacht Club (MAYC) collections required a nosedive, the recently launched GameStop NFT marketplace has had a success, using its daily fee revenue shedding below $4,000.
