- NFTStatistics.eth shares a long Twitter thread revealing important pointers related to the BendDAO situation.
- The thread mentioned that BendDAO has run out of Ethereum, and they just have 12.5 WETH in the contract.
- Information about NFT leveraging, debts against NFTs, and auctions were revealed in the Twitter thread.
NFTStatistics.eth has recently shared a long Twitter thread revealing details surrounding the BendDAO situation. The Twitter thread mentioned that the BendDAO has run out of ETH, and there are just 12.5 WETH left in the contract.
Ok. Long thread on the BendDAO situation:— NFTStatistics.eth (@punk9059) August 21, 2022
1) They’ve run out of ETH. There is just 12.5 WETH in the contract.
2) What does this mean? People who lent money to others via BendDAO to buy NFTs on leverage can’t pull their money out. About 15,000 ETH was lent.
Well, this means that the users who lent money to others via the BendDAO platform in order to purchase NFTs on leverage won’t be able to withdraw their money. As a matter of fact, around 15,000 ETH was lent, and that’s certainly huge.
In addition, the data indicates that the NFT borrowers will be required to pay a 100% interest rate on the amount of ETH they borrowed. This has led to a situation where the debt against these NFTs is rising rapidly.
Discussing the case of NFTs, the majority of NFTs that are added to the list of defaulters have no bids. There are no bids because BendDAO needs bids that are above the debt the borrower owes and above the OpenSea floor.
You must note that to open a bid, you will have to lock up ETH for 48 hours. Well, concluding the tweet thread, NFTStatistics.eth mentioned that there are a lot of other NFTs as well that is about to default and will certainly come to auction.
The reasons could be anything such as the rising debt, sky-high interest rates, or the OpenSea floor falling.