BendDAO Protocol Drained, $55M Worth Of NFTs At Risk Of Liquidation

08/23/2022

2 minutes read

2022.08.23 04:21

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.

gmWhile you were asleep the BendDAO bank run finally happened 15 wETH ($25,081) left in the wallet that had 18,000 ETH ($29,160,000) in it just 48 hours agoStill 14,500 wETH owed to lenders….Absolute shitshow pic.twitter.com/RKkdqVAVIf

— Cirrus (@CirrusNFT) August 21, 2022

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.

Bored Apes Approaching Mass Liquidation On BendDAO !Bored Apes NFTs at risk of liquidation as floor prices drop more than 50% since all-time high. #BAYC pic.twitter.com/vpGvZuySIo

— Altcoin Alerts (@Altcoin_Alerts) August 22, 2022

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 high 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.