As the first NFT point-to-pool liquidity lending protocol, BendDAO has decided to move to the Bitcoin NFT ecosystem after a year of sedimentation, providing Bitcoin NFT lending.
(Previous summary: BendDAO, with over 150 BAYC and MAYC tokens approaching the “liquidation edge,” ParaSpace panic breaches the floor price.)
(Background supplement: BendDAO, the largest holder of BAYC in the NFT lending protocol! Token BEND public sale skyrocketed 815% in seconds.)
As the first liquidity lending protocol supporting NFT point-to-pool, BendDAO achieved astonishing results during the hot NFT race in 2022, with a daily volume of over $48 million and only 46 days since its launch. It locked over 100,000 ETH, providing a large amount of liquidity to the blue-chip NFT players at that time. However, as the NFT market gradually cooled down and competitors such as Paraspace and Blast emerged, BendDAO’s market share also decreased.
Expanding into the BTC ecosystem for NFT lending
Starting this year, the market’s attention has shifted to the Bitcoin NFT ecosystem. BendDAO announced on the 19th that it would prepare to provide Bitcoin NFT lending and would approach it from two solution perspectives.
Further reading: Bitcoin ecosystem explosion: Which emerging projects are worth attention?
First, Solution A aims to utilize existing third-party bridging protocols. This method allows users to convert Bitcoin NFTs into ERC721 tokens through bridging and deposit them into BendDAO. The biggest advantage of this solution is that BendDAO already has verified and secure infrastructure, which means it can quickly integrate and potentially deploy 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 a multi-signature verification mechanism. Users send Bitcoin NFTs to the multi-signature wallet managed by BendDAO, and after monitoring and verification by offline custodians, ERC721 tokens corresponding to the original NFTs will be minted for users, which can be used for lending ETH, USDT, or wBTC.
In the future, BendDAO hopes to strengthen the connection between Bitcoin and DeFi by introducing wBTC liquidity pools and integrating wBTC, further solidifying its position at the intersection of DeFi and the Bitcoin ecosystem.
Bend token rises 55% in a week
Affected by this news, BendDAO’s token, Bend, has shown strong performance, rising 55% to $0.0055 in the past week, with a market capitalization of $6.77 million. However, it still needs nearly a tenfold increase from the original high of $0.05.
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