In the midst of the current credit crisis, the NFT Lending Protocol Bend DAO has proposed some emergency changes.

The Bend DAO development team expressed their regret, saying, "We are sorry that when we were setting the initial parameters, we underestimated how illiquid NFTs could be in a bear market."

On Monday, in an effort to restore balance to the ecosystem, the developers of the decentralized nonfungible tokens (NFTs) borrowing and lending protocol Bend DAO proposed new emergency measures.

On the same day, it became public knowledge that the venture could only repay its creditors with a total of 15 wrapped Ether (wETH) valued at $23,715, according to reports. The mechanism resulted in the lending of approximately 15,000 ETH in total.

The Bend Dao development team proposed lowering the liquidation threshold for collateral from 85% of the loan value to 70% of the loan value in order to prevent a credit crisis from affecting the protocol. This would bring the threshold closer in line with current standards.

Next, it was announced that the auction period for NFTs on its platform would be shortened from 48 hours to 4 hours.

After that, the requirement that the minimum bid price of NFTs on Bend DAO be pegged to 95% of the floor price on popular digital collectibles trading platform OpenSea would be removed. This would mean that the minimum bid price of NFTs on Bend DAO could be set at whatever value the market dictates.

The interest rates that apply to loans are going to be recalculated, going from the current 100% down to 20%.

At long last, the BendDAO treasury would be given the authority to use revenue and take care of delinquent accounts.

As a result of the falling floor prices of non-traded funds (NFTs) in the bear market, even among reputable collections, a great number of NFTs are now in danger of being liquidated as interest rates are driven to abnormally high levels.

Since the interest rates on "debt-secured" NFTs have skyrocketed to nearly 100%, some users may be finding that it is more economical to simply let go of their digital collectibles (which are also decreasing in value) rather than pay back the debt, which results in bad loans. This is because the value of the digital collectibles is decreasing.

Thirdly, non-fungible token (NFT) markets are not as liquid as coin or token markets. This means that there is a possibility that there will be no bids during the process of an NFT being liquidated, which will further contribute to the death spiral.

Before the credit issues began, Bend DAO was widely considered to be a leading platform for the borrowing and lending of NFTs.

The vote on the current proposal will take place over the course of 24 hours, and it has already reached the quorum requirement of 47 million veBend with 99.23% of the votes in favor.

Comments

The partnership between QuizTalk and Meta-Airline is an NFT strategic alliance.

The alliance's primary objective is to expand the breadth of NFT markets both domestically and internationally by ensuring that both organizations' platforms feature NFT content. SK Telecom's Ifland metaverse service recently sponsored a quiz show by QuizTalk Co., Ltd., which has expanded its presence in the NS home shopping and live commerce industry. QTCON has now been made available on the three largest domestic exchanges, Bithumb, Upbit, and Coinone. It also debuted on the international cryptocurrency exchange Gate.io. About 780 million answers, 1.32 million quizzes, and 700,000 downloads can be found on QuizTalk's "QUIZTOK" platform. You can earn points for answering a quiz question on Quiz Talk, and the person who posed the question can earn points as well. To make it easier for one's followers to access quizzes, a quiz curator has been implemented. If a company wants to promote itself on QuizTalk, it must first acquire and use tokens. Your MAL-SCAN ...

Investors weigh the outlooks for rates and the economy as the dollar edges up.

The Federal Reserve, the European Central Bank, and the Bank of England will all be making significant policy decisions next week. Investors and traders want to know if inflation has peaked, which would give policymakers room to raise interest rates more gradually in the coming months. The Fed's policy meeting on December 14 is also important because it will come one day before the next monthly report on consumer inflation in the United States is due on December 15. "Until we have those central bank meetings and one significant monthly U.S. data release, not a great deal is occurring," RBC currency analyst Adam Cole said. "U.S. CPI is the one data release that seems to really matter for broader dollar movement at the moment." When compared to other major currencies, the dollar held constant. The last known value of the euro in US dollars was $1.0507, while the pound dropped 0.3% to $1.2171. The Japanese currency, which is quite sensitive to changes in the yield ...

WazirX Exchange is accused by Indian law enforcement of helping to launder $130 million.

The department in charge of combating financial crimes in India, the Enforcement Directorate (ED), is investigating cryptocurrency exchanges that may have handled transfers from companies under investigation to foreign wallets totaling more than 10 billion rupees, or roughly $130 million. According to a representative who talked with The Economic Times, at least ten cryptocurrency exchanges are allegedly implicated, and WazirX's bank accounts have been seized. Companies under investigation in a case involving rapid loans allegedly executed transactions totaling up to 1 billion rupees ($1.3 million) in the names of individuals with no relation to the money. These businesses frequently had ties to China. The transactions were revealed to be suspicious by Know Your Customer/Anti-Money Laundering (KYC/AML) processes, but no increased due diligence was carried out and no suspicious transaction notifications were submitted to the ED, according to the agency. Last week, the ED allegedly c...

Search This Blog