Get-Set-GHO, Lido V2 & A reading list for night owls
Protocol of the week: BendDAO🥀
Welcome to the 46th edition of DeFi Fridays!
Access all the previous editions here.
101 today:
Protocol of the week: BendDAO🥀
Major happenings in the ecosystem. 🔰
In this week’s good reads (and watches):
The Whole Crypto Catalogue.
A No-sleep Reading List.
StarkNet Sessions 2023.
Protocol Of The Week:
What is BendDAO?
BendDAO is an NFT Liquidity providing protocol that is built on the Ethereum Blockchain. It offers liquidity in the ecosystem, by allowing users to acquire ETH by putting up their blue-chip NFTs as collateral.
What are they doing?
BendDAO is a peer-to-pool liquidity protocol that offers liquidity to users in the following ways:
Instant NFT-backed Loans: Borrowers can put up their NFTs as collateral, and obtain funds in exchange. This loan can be paid back over time with interest. Suppliers (liquidity providers) can deposit their ETH in BendDAO’s pool, and earn interest.
Collateral Listing: Users can also list their NFTs on the protocol, which can allow the user to get 40% of the floor value instantly, even before it is sold.
Buying NFTs with Down-payments: Users can buy blue-chip NFTs by paying 60% of their value upfront, and the remainder as loan repayment over time.
How are they doing it?
Let’s understand that with an example:
Bency is in need of instant money to buy some pasta, so he chooses to put up his NFT on BendDAO via the Collateral Listing feature. He borrows 40% of the NFT floor price (an NFT-backed loan) and uses it to purchase pasta. After some time, he has enough money, so he repays his loan and gets his NFT back from the protocol.
After some time, Bency is again in need of money, only this time the sum of money is greater, so he chooses to sell his NFT. In this case, he gets 40% of the floor price instantly, and the rest is paid to him by the NFT buyer, after the sale of the NFT. This is illustrated in the picture below:
Now, Bency wants to buy an NFT, but he does not have enough money, so he chooses to buy the collectible with the help of BendDAO’s down payment feature. He pays 60% of the NFT’s price as down payment and the rest is paid back as an NFT-backed loan, as can be seen in the image below:
To learn how to use BendDAO, click here.
We explain one DeFi Protocol every Friday:
Major News in the Ecosystem:
Visa announces plans to convert digital currency into fiat.🔰
Lido V2 is live.🔰
GHO, Aave’s stablecoin is live on the Ethereum Goerli Testnet.🔰
More Good Reads (and watches):
✍️The Whole Crypto Catalogue- Progressive Decentralization.
✍️A No-Sleep Crypto Reading List.
That’s it for today, folks. See ya next Friday. 🧢
Disclaimer: Nothing included in DeFi Fridays should be taken as financial advice.