NFT News- There are just 15 WETH in the contract at the time of writing.
- An estimated 15,000 ETH (Ethereum) remains to be paid to lenders.
It has been discovered that the Wrapped Ether (wETH) contract used by the lending protocol BendDAO has exhausted its supply. There are just 15 WETH in the contract at the time of writing, and an estimated 15,000 ETH remains to be paid to lenders.
In a post on Twitter, researcher NFTStatistics.eth broke out the situation, pointing out that platform NFT borrowers must now pay back 100 percent of the ETH they borrowed in interest. NFTs have also seen an increase in the amount of debt secured by them.
Proposal to Modify Parameters
Furthermore, the study noticed that many of the NFTs that have been utilized as collateral and defaulted today have no bids. In conjunction with this, there are more NFTs on the platform’s alert list, which are NFTs ready to fail and come to auction because of the declining NFT floor prices or mounting debt and high-interest rates.
The BendDAO co-founder said that the organization is preparing a proposal to modify the NFT lending platform’s parameters. The change will go into effect after 24 hours if it passes the voting process.
During the crisis, one Twitter user brought to light the situation by pointing out that the platform’s co-founder is also in danger of being liquidated by the same service he helped create.
Last week, experts predicted that $55 million in loans on BendDAO would need to be recouped in a series of NFT liquidations. Meanwhile, the larger NFT world is not fairing much better. At the time, as floor prices of BAYC and Mutant Ape Yacht Club (MAYC) collections took a tumble, the newly created GameStop NFT marketplace has taken a blow, with its daily fee revenue plummeting below $4,000.
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Source: https://thenewscrypto.com/lending-protocol-benddao-under-pressure-over-nft-massacre/