NFT Lending Protocol Bend DAO Propose Emergency Changes!

Bend DAO's dev team regrets underestimating how illiquid NFTs could be in a bear market when setting initial parameters.

Bend DAO's developers proposed emergency measures Monday to stabilize the ecosystem.

The same day, the project had just 15 wrapped Ether (wETH) worth $23,715 to repay lenders. The mechanism lent 15,000 ETH.

Bend Dao's development team suggested limiting collateral liquidation to 70% of loan value, down from 85%, to avoid a credit crisis.

Next, its platform will reduce NFT auctions from 48 to 4 hours.

The requirement that Bend DAO's minimum bid price be 95% of OpenSea's floor price would be removed.

Loan rates will drop from 100% to 20%.

Finally, BendDAO's treasury could cover bad debts with revenue.

Even among reputable collections, falling NFT floor prices in the bear market have put many NFTs in danger of liquidation as interest rates soar.

As interest rates on "debt-secured" NFTs skyrocket to nearly 100%, some users may find it more economical to let go of their digital collectibles (which are also decreasing in value), resulting in bad loans.

Third, NFT markets are less liquid than coin or token markets, so there may be no bids during liquidation, adding to the death spiral.

Before credit issues, Bend DAO was a top NFT borrowing and lending platform.

Current proposal vote will last 24 hours and has passed quorum with 99.23% in favor.

Comments

Sandbox adds FaZe Clan as a member Sandbox adds FaZe Clan as a member

With a new partnership with the leading Web3 company The Sandbox, eSports, lifestyle, and media company FaZe Holdings Inc (NASDAQ: FAZE) is heading to the metaverse. The decentralized metaverse business The Sandbox, which is part of Animoca Brands, has announced a partnership with the North American gaming and esports organization FaZe Clan. Through this agreement, FaZe Clan will set up a virtual territory called FaZe World and enter the metaverse. In the release, it says that FaZe and Sandbox will work together to create new ways to make money and to host events and other experiences in FaZe World. "Faze Clan into metaverse" is a joint project between: The FaZe Clan will make FaZe World, a 12-by-12-foot virtual plot in the Sandbox metaverse. "Part virtual real estate and part amusement park," say the two companies, is how they describe the world. To back up this idea, they plan to build digital infrastructure. In FaZe World, FaZe and Sandbox will host virtual event

Asian currency bears retreat as the outlook for inflation improves.

According to a fortnightly poll of 12 analysts, short positions on all emerging Asian currencies fell, with bets on China's yuan at their lowest since late April. Short positions in the Philippine peso, Singapore dollar, and Indonesian rupiah all hit multi-month lows. An unchanged July inflation print in the United States, the first notable sign of relief after years of rising prices, also helped boost sentiment in the region. Short bets on the Thai baht fell to their lowest level since early June after the Bank of Thailand (BoT) raised its interest rate by 25 basis points on Wednesday, resuming its tightening cycle after trailing regional peers. Thailand, whose economy is heavily reliant on tourism, has begun to show signs of a gradual economic recovery as tourists return, allowing the BoT to adjust its monetary policy. Analysts widely anticipate that the BoT will maintain gradual policy normalisation throughout the rest of the year. The baht, one of the least shorted currencies

Soft demand lowers China's producer prices and consumer inflation.

China's factory-gate prices fell for a second month in November, but consumer inflation slowed, reflecting poor activity and tepid demand in a pandemic-slowed economy. Analysts anticipate the government to maintain rates low and create confidence. According to Friday's National Bureau of Statistics (NBS) data, the producer price index (PPI) was down 1.3% from a year earlier. Reuters had predicted a 1.4% drop. The November CPI grew 1.6% from a year earlier, slower than October's 2.1% annual growth but in line with a Reuters survey. "These figures show economic momentum (continues) to decline," said Pinpoint Asset Management's Zhiwei Zhang. In 2023, the government will focus on stabilizing growth, boosting domestic demand, and opening up to the globe, according to a Politburo meeting on Tuesday. Zhang said the government would take further steps to boost the economy despite easing pandemic controls last week. "The Politburo highlighted low confidence as an

Meta Financies

Search This Blog