BendDAO emerges as a preeminent platform in the NFT-Fi sector, specializing in Lending & Borrowing services, currently asserting its dominance with the highest Total Value Locked (TVL) in its respective market segment. This platform offers an array of robust tools tailored to users aiming to optimize their holdings of ETH or prominent Blue-chip NFT assets while participating in lending and borrowing endeavors to accrue lucrative interest yields. In the ensuing discourse, we present an in-depth elucidation on the pragmatic utilization of BendDAO.
BendDAO serves as a platform facilitating NFT collateralization, allowing individuals to generate loans backed by NFT assets. For instance, within BendDAO’s framework, users can leverage their BoredApe NFT holdings to secure loans in ETH, essentially utilizing their BoredApe NFTs as collateral for ETH borrowings.
In addition to lending functionalities, BendDAO offers a spectrum of ancillary activities including Yield farming, Staking, Auctioning, Listing, and more. These features collectively contribute to augmenting the liquidity of users’ NFT portfolios. BendDAO emerges as a comprehensive liquidity protocol tailored specifically for NFT collections.
BendDAO operates within the Ethereum network, necessitating users to configure an Ethereum-compatible digital wallet such as Metamask to engage with the platform. It is crucial to acknowledge that wallets sourced from centralized exchanges (e.g., Binance, OKX, etc.) are incompatible with BendDAO’s infrastructure.
- Access https://www.benddao.xyz/en/ and locate the “Wallet” icon situated at the top-right corner of the interface.
- Select the option to connect with Web3 wallets such as Metamask, Trust Wallet, etc. For illustrative purposes, we will demonstrate the process using Metamask.
- Upon initiation of the connection process, the wallet interface will prompt the user for authorization. Proceed by clicking “Approve” to finalize the connectivity process
Users have the option to stay informed about price fluctuations within NFT collections and changes in lending and borrowing activities on the BendDAO platform by enabling notifications.
To activate notifications, follow these steps:
- Visit the homepage and select “Settings.”
- Connect your Telegram or Discord account.
- Complete the process to receive notifications from BendDAO via these platforms.
By following these steps, users can stay updated on important developments and changes within the BendDAO ecosystem, enhancing their overall experience and engagement with the platform.
2.3.1. Borrowing ETH Instructions
Users holding Blue-chip NFT collections (including BAYC, CryptoPunks, Moonbirds, Azuki, MAYC, CloneX, Doodles, and Space Doodles) can borrow and repay ETH at any time on BendDAO.
Specific instructions for using Blue-chip NFTs to borrow ETH on BendDAO are as follows:
Step 1: Select “Borrow ETH” → Connect your wallet address and sign the confirmation.
Step 2: Select one or multiple NFTs as collateral
The “Available to borrow” indicates the estimated amount of ETH you can borrow against your pledged NFTs. For example, with a CloneX NFT as shown, you can borrow 2.47 ETH. Available to borrow = Floor price * Collateral ratio.
Step 3: Input the desired borrowing amount
Note: At this stage, it’s advisable not to borrow more than 95% of the borrowed value to avoid transaction failures. BendDAO does not impose a deadline for your loan.
Step 4: Approve loan tokens
Debt Token Approval: Grant permission for the protocol to utilize your debt tokens (Debt token = debt + interest). NFT Token Approval: Grant permission for the protocol to utilize your NFTs.
Step 5: Completion
Upon completing the approval process, select “Borrow ETH,” and the protocol will collateralize your NFTs and lend you ETH.
2.3.2. Guide to Loan Repayment
Users are advised to repay their loans when the Health Factor approaches the threshold of 1 to avoid liquidation.
Step 1: Access the homepage → select “My NFTs.”
Step 2: Choose the NFT to repay the loan → select “Repay” → choose “Repay loans.”
Step 3: Approve ETH repayment.
Step 4: Repaying the Loan
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