Overnight, the BendDAO agreement was depleted, and it was left with just 15 Wrapped Ethereum (wETH) to pay bankers, in addition to 15,000 ETH that needed to be paid to the mortgage companies.
Researchers at NFTStatistics.eth investigated the situation and shared their findings in a thread on Twitter. They emphasized that NFT borrowers on the site should now pay 100% interest on the ETH that they borrowed. In addition to this, the amount of debt secured by NFTs is continuing to rise.
The BendDAO Contract Was Cancelled During the Night
In addition, the researcher came to the conclusion that many of the NFTs that had been used as protection but were unsuccessful do not currently have any bids. In particular, there are more NFTs on the platform’s alert list. These are NFTs that are on the verge of defaulting and will be auctioned off as a result of falling NFT floor prices or increasing debt and high interest rates.
A statement was made by the co-founder of BendDAO indicating that their team is now working on a proposal to change criteria inside the NFT lending platform. After going through the voting procedure and receiving approval, the update will be applied to the system after a period of 24 hours.
A person on Twitter made use of the circumstance to make fun of the website, bringing out that even the co-founder of BendDAO is on the verge of being liquidated by their own loan platform. This was done while the issue was still ongoing.
The previous week, specialists had a hunch that a torrent of NFT liquidations with a total value of $55 million was on its way to collect loans on BendDAO. The problem might bring about a “death spiral” for the entire non-fungible token (NFT) market and the Bored Ape Yacht Club (BAYC) ecosystem, according to the creator of Double Studio, DoubleQ.
In the meantime, the broader NFT industry is not doing noticeably better. Since the accumulating floor prices for BAYC and Mutations Ape Yacht Club (MAYC) have dropped significantly recently, the recently established GameStop NFT marketplace has taken a hit, and daily fee earnings have fallen below $4,000.
A Strike Is Landed Against GameStop’s NFT Marketplace
DCForecasts has stated that the GameStop NFT marketplace has suffered a hit, and as a result, the daily fee revenue has fallen below $4,000. This comes at the same time when comparable issues are affecting the broader NFT industry. The GameStop NFT marketplace, which only opened its doors a month ago, has seen a significant drop in activity as a result.
It would appear that costs have decreased all the way down to $2,000 according to the data that was provided by DappRadar.
But GameStop wasn’t the only business to feel the effects of the recession. In addition, the floor at the Bored Ape Yacht Club is said to have dropped by 19% since the beginning of this month, as was mentioned before by ourselves and by other sources.