As the first NFT point-to-pool liquidity lending protocol, BendDAO has experienced a year of sedimentation and recently decided to move to the Bitcoin NFT ecosystem, providing Bitcoin NFT lending.
(Previous summary:
BendDAO, with over 150 BAYC and MAYC tokens approaching the “liquidation edge,” ParaSpace panics and breaks the floor price.
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(Background supplement:
NFT lending protocol BendDAO becomes the largest holder of BAYC tokens! Token BEND’s public sale skyrockets by 815% in seconds.
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As the first liquidity lending protocol that supports NFT point-to-pool, BendDAO has achieved amazing results during the hot NFT race in 2022, with a staggering daily volume exceeding $48 million. Within just 46 days of its launch, it has locked in over 100,000 ETH, providing a large amount of liquidity for the blue-chip NFT players at that time. However, as the NFT market gradually cools down and competing products such as Paraspace and Blast emerge one after another, BendDAO’s market share has also decreased.
Turning to the BTC ecosystem to expand NFT lending
Starting this year, the market’s attention has shifted to the Bitcoin NFT ecosystem. BendDAO announced on the 19th that it will prepare to provide Bitcoin NFT lending and will start with two solutions.
Further reading:
Bitcoin ecosystem explosion: Which emerging projects are worth paying attention to?
First, solution A hopes to utilize existing third-party bridging protocols. This method allows users to convert Bitcoin NFTs into ERC721 tokens through bridging and then deposit them into BendDAO. The biggest advantage of this solution is that BendDAO already has a verified and secure infrastructure, which means it can quickly integrate and possibly deploy it immediately.
On the other hand, solution B proposes a more direct approach, using a multi-signature wallet system as an intermediary between the Bitcoin and Ethereum networks. This method allows BendDAO to have greater control over the bridging process and improve security through multi-signature verification mechanisms. Users will send Bitcoin NFTs to the multi-signature wallet managed by BendDAO. After being monitored and verified by offline custodians, ERC721 tokens corresponding to the original NFTs will be minted for users, which can then be used for lending ETH, USDT, or wBTC.
In the future, BendDAO hopes to strengthen the connection between Bitcoin and DeFi by introducing a wBTC liquidity pool and integrating wBTC, further consolidating its position at the intersection of DeFi and the Bitcoin ecosystem.
Bend token rose 55% in a week
Affected by this news, BendDAO’s token, Bend, showed strong momentum, rising 55% to $0.0055 in the past week, with a market value of $6.77 million. However, it still requires nearly 10 times the increase from its initial high of $0.05.
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Bend
BendDAO
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Bitcoin