BendDAO Protocol Drained, $55M Worth of NFTs at Risk of Liquidation

BendDAO Protocol Drained, $55M Worth of NFTs at Risk of Liquidation

The crypto grim reaper just can’t get enough of Bored Apes, as the BAYC-related lending protocol BendDAO ran out of liquidation overnight. There were warnings last week that the NFT lending contract might summon the ghost of crypto winter, and now, with BendDAO’s balance standing at only 15 Wrapped Ether (wETH), the situation is getting out of control.

Debt Keeps Piling Up, BAYC in Danger of a Knockout

Many crypto enthusiasts and analysts are voicing their opinion on the ongoing situation. For instance, the EmperorNFT noted that BendDAO is going to sell off 45 Bored Apes Yacht Club NFTs in an auction today. The developments made the floor price of Bored Apes NFT drop even further. At press time, the floor price is 67 Ethereum (ETH), which is 1.5% less than 24 hours ago.

Furthermore, with the Bored Apes NFT sidekick, the Mutant Apes NFT floor price dropping all the way to 11.2 Ethereum (ETH), it’s unlikely that the ever-popular digital primates are going to climb out of the red zone anytime soon. As if that wasn’t enough, another veteran crypto project, Crytopunks NFTs, managed to overthrow Bored Apes NFT for a while on Sunday.

Ultimately, there’s about 2.5% of all Bored Apes Yacht Club NFTs that are exposed to liquidation because of underpaid loans on BendDAO. As the interest rates went to 100% on ETH loans due to this situation, even BenDAO’s co-founder, “CodeInCoffee.eth,” is about to get his Bored Ape liquidated.

With NFT floor prices now plunging over 50% from all-time highs and the hacktivists of Anonymous Group on their back, BAYC and other Yuga Labs’ road back to glory might be as bumpy as ever. However, with many NFT enthusiasts in fear, some crypto community members see the situation as an opportunity to join the club for a small portion of the price.

On the Flipside

Why You Should Care

With about 2.5% of the most successful NFT project of all time exposed to liquidation, BendDAO might set off an unprecedented NFT market crash.

Read about the first trips to the Otherside, a metaverse project by Yuga Labs

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