Depositors Drain BendDAO ETH Reserves, No Bids on Defaulting NFTs

NFT-focused lending platform BendDAO is currently facing an insolvency crisis, having run out of funds to pay depositors. This comes shortly after predictions of mass NFT liquidations to reclaim the platform’s loans.  BendDAO is currently witnessing a bank run as several of the platform’s lenders withdrew their assets over the weekend. At writing the platform has roughly 425 wETH in its reserve and still owes its depositors about 13K ETH.  As analyst NFTStatistics.eth explained in a Twitter post, BendDAO’s debtors…

Existing Loans may Trigger Liquidity Crisis across BAYC and NFT Market: Report

Several BAYC and CryptoPunks collectors who put up their tokens as collateral backing for Ethereum loans have been unable to settle their dues. Crypto analysts believe this could mark the onset of the first major liquidation crisis in the NFT industry.  BendDAO Loans and Possible Risks Rumors of a liquidation spiral began earlier this week following a post about NFT lending platform BendDAO. BendDAO is a web3 protocol that allows users to take out loans in Ethereum using their non-fungible…