Understanding the BendDAO Loan crisis

Price divergence between the NFT and its paired token in a liquidity pool. NFT staking is the most direct method, where an NFT holder locks their asset into a specific protocol’s smart contract to betory casino review earn rewards. The current landscape of NFT-based passive income is defined by three primary strategies ∞ staking, collateralized lending, and specialized yield farming. The protocol's Liquidation bid requirements were also poorly designed, failing to account for VOLATILITY and the fact that the OpenSea floor is typically 5% higher than the global floor. When this happens, it automatically triggers a 48-hour liquidation protection window enabling borrowers to pay off the debt and reclaim their NFT. The protocol provides a trustless liquidity solution to NFT holders who require ETH  but do not wish to sell their NFTs.

Current DeFi Yield Strategies for NFT Assets

Any time of year, you can enjoy performances by the Frog Choir in Hogsmeade, meet-and-greets with Trolls, or sightings of the crew of Access Hollywood, who often set up right outside the theme park's main entrance. In the fall and holiday season, you can experience the theme park’s after-hours thrills at Halloween Horror Nights or revel in the cheery festivities of Grinchmas and Christmas in the Wizarding World of Harry Potter. A little deeper into the theme park, you’ll find the Springfield, U.S.A. area, home to The Simpsons Ride and Bart-and-Lisa-friendly dining options such as Krusty Burger and Lard Lad Donuts. The origins of the theme park, which first opened in 1964, are in Universal Studios itself, which is still very much operational today. As the journey begins, someone is sabotaging Krustyland, Krusty the Clown's low-budget theme park, and you'll smash and blast through the park with Homer, Marge, Bart, Lisa, and Maggie in an over-the-top non-stop adventure. So, come and experience Hollywood… Universal Studios Hollywood, the world’s largest real-life movie studio and theme park!

Where is it best to stay when visiting Universal Studios Hollywood?

For example, if the floor is 10 ETH, the lender can make an offer with 9 ETH max borrow + 90% APY, and another offer with 5 ETH max borrow + 20% APY, earning points for both offers. Moreover, lending points can be earned simultaneously with the bidding points using the same ETH in the pool. Lenders can get lending points by making loan offers with the ETH in their Blur Pool.

• Blend has taken the peer-to-peer approach to its design due to inefficiencies of on-chain governance and centralization issues that liquidity pool-based protocols inherit from attempting to manage lender deposits.
• If you’re a Nintendo fan, book the Early Access Ticket (a $20 add-on) that grants you access to the area for one hour before the park opens.
• When liquidation proceeds are returned to the Pool, the onCollateralLiquidated callback function is invoked.
• The emergence of Dynamic NFTs (dNFTs) is set to revolutionize how digital assets function as collateral.
• Unlike traditional fungible tokens used in DeFi lending or staking, the unique valuation challenge of an NFT ∞ which is not easily divisible or priced by a simple market order book ∞ requires specialized protocols.
• Focus on pools with lower volatility pairs; understand the specific AMM design.

Unlike traditional fungible tokens used in DeFi lending or staking, the unique valuation challenge of an NFT ∞ which is not easily divisible or priced by a simple market order book ∞ requires specialized protocols. Liquidation is triggered when the NFT floor price falls below the liquidation threshold, resulting in a Health Factor of less than 1.0. This means that if you borrow ETH against your NFT at a floor price of 100E, BendDAO will provide you with a 40E loan (i.e. 40% FP of your NFT at the time of borrowing) with a 10-15% interest rate. Approved blue-chip collections are collateralized at 30%-40% of the floor price.
These protocols use mechanisms like floor price or community-driven appraisals to establish a loan-to-value (LTV) ratio, thus unlocking the asset’s dormant capital. The majority of the liquidated NFTs have no bids because the protocol requires bids to be at least 95% of the NFT collection's floor price and above the borrower's debt, leaving only a 5% upside for the bidder. According to research, most loans for BAYC-backed debts were obtained at around 125ETH floor price for BAYC and 30E floor price for MAYC.

collateralized lending

To protect users, Paddle uses a partial liquidation model. At Paddle, anyone can participate in liquidations directly through the frontend to help maintain the stability and integrity of the platform. The callback follows the ERC-165 interface detection standard, ensuring the Pool can properly receive and handle the liquidation proceeds.
Although, introducing leverage into a volatile asset class could lead to heavy losses taken on by uninformed retail borrowers (losing their prized NFT or ETH collateral) if the lender decides to exit their position and no new lender is willing to step in. As an example, check out Tyler's short-term trade using BNPL, where he bought an Azuki for 2.2 ETH when the collection's floor price was 15.9 ETH and sold the NFT overnight for 16.9 ETH. As seen in the chart above, the Dutch auction starts at a 0% interest rate and increases until a new lender steps in to take over the loan. The refinancing auction is a Dutch auction process to extend the loan to a new lender who is willing to repay the full amount to the original lender to take over the loan for a higher interest rate. With Blend, lenders can exit their position at any time by triggering a refinancing auction for the borrower to find a new lender at a new rate, which lowers the risk for lenders and creates a much more efficient market (lenders can offer better rates).
Liquidators can repay a portion of the borrower’s debt and, in return, claim the borrower’s NFT collateral. When a borrower's position becomes undercollateralized, the liquidation process begins. For each loan market, liquidation can be triggered when Borrow Limit Used exceeds 100%. Each collateral is tracked by a unique collateralHash which is derived from the loan receipt details. Then, face action head-on in heart-pounding rides, shows and attractions – including Fast and Furious – Supercharged - that put you inside some of the world’s most popular TV shows and movies.
This integration allows NFT holders to retain ownership rights and potential long-term capital appreciation while simultaneously earning short-term liquidity or token rewards. This shift is achieved by leveraging the smart contract functionality of the underlying blockchain, enabling NFTs to be locked, lent, or collateralized to generate continuous cash flow for the holder without requiring the asset to be sold. So, unless the owner wants the NFT's specific IP, there is simply no reason to clear the debt.
Either way, be sure to download the Universal Studios Hollywood Mobile App to your phone so that you can navigate your day from checking on ride wait times, ordering food and making virtual line reservations for certain rides and restaurants. If you’re a Nintendo fan, book the Early Access Ticket (a $20 add-on) that grants you access to the area for one hour before the park opens. You may also want to consider purchasing the Universal Express ticket option that offers shorter wait times when waiting in line for your favorite ride. That’s why the park’s first attraction, the hourlong Studio Tour, is an essential part of any visit. THE SIMPSONS ™ & ©2022 Twentieth Century Fox Film Corporation.

Universal Studios Hollywood Tickets

This amazing attraction uses groundbreaking, state-of-the-art technology (and a little magic) to create a one-of-a-kind ride. Collect coins and throw shells to win the Golden Cup on the groundbreaking Mario Kart ride with cutting-edge technology at SUPER NINTENDO WORLD™. Receive official gate-ready digital tickets instantly when purchasing Universal Studios Hollywood Tickets from AttractionTickets.com – buy now, use now and enjoy direct, fast-track entry to the park as you bypass the ticket and voucher lines. And don't miss the chance to learn Hollywood movie-making secrets at the Special Effects Show, where real Hollywood stuntmen and cutting-edge technology come together to recreate scenes from your favourite blockbuster movies! Then, star in the thrilling rides, shows and attractions that cast you inside the movie action.

However, Blur has announced that borrowers can now repay the borrowed funds in increments to extend the loan duration. Previously, the borrower must repay the full borrowed amount when the lender calls within the period. Alternatively, the lender can also skip the auction by submitting another lender's offer to the vault to exit their position if a compatible one is available. This allows the market to determine the loan terms (floating rates) and, subsequently, the underlying value of a collection. NFT holders of these collections can borrow ETH against their NFTs at a fixed rate and no expiries, meaning borrowers can repay at any time and are only subject to liquidation by market-determined interest rates.
On top of having fixed lending terms for borrowers, what sets Blend apart from other peer-to-peer lending protocols is that loan offers on Blend do not have expiry dates, which is much more appealing for both parties. Thus, the protocol leaves the lender to decide the amount of risk they are willing to take on via the loan-to-value (LTV) ratio and interest rates. There are three main models of NFT lending protocols that currently exist; perp-like NFT protocols (such as Floor Perps and Papr), peer-to-pool (such as BendDAO and JPEG'd), and peer-to-peer (such as NFTfi and MetaStreet). The External Collateral Liquidator is a component in the MetaStreet v2 protocol responsible for facilitating the liquidation of defaulted loan collateral through external marketplaces or processes.

• NFT staking is the most direct method, where an NFT holder locks their asset into a specific protocol’s smart contract to earn rewards.
• The goal is to create a single, unified market for NFT collateral, where a Layer 2 solution or a secure bridging protocol can verify the ownership and status of an NFT from any chain (e.g. an Ethereum NFT used to borrow tokens on a Solana-based lending protocol).
• This programmability allows the asset to serve as a self-adjusting financial instrument, providing a more transparent and predictable basis for lending.
• The following table summarizes the primary risks for the two main passive income strategies.
• Blend’s design considerations improve the lending experience for both borrowers and lenders, as well as leveraging its existing marketplace and integration of lending points, which have resulted in the rapid growth and adoption of the protocol.
• These protocols use mechanisms like floor price or community-driven appraisals to establish a loan-to-value (LTV) ratio, thus unlocking the asset’s dormant capital.

What movies were filmed at Universal Studios Hollywood?

Because the borrower's position is essentially a put option for the NFT by nature, this forces the lender to carefully and tightly manage their loan offer by setting short expiration dates, high-interest rates, low LTV, or a combination of these parameters. However, because Blend's design comprises continuous/perpetual loans by default, the loan is live until the lender triggers a refinancing auction and the loan defaults or the borrower satisfies the amount owed. Hence, they can easily match borrowers with lenders and the abundance of liquidity on their platform via the point system. Check out our previous NFT lending landscape report, where we covered some of the top NFT lending protocols.
As you make your way onto the ride, Hagrid gives instructions on the proper way to approach a Hippogriff. Fight alongside Optimus Prime and try to survive as you protect the Allspark from Decepticons over four stories tall. Prepare for the greatest battle you’ll ever ride! The laughs keep coming after the ride with an interactive, Minion-inspired dance party. Join Gru, his daughters and the mischievous Minions on a heartwarming and thrilling ride. Grab a seat with The Simpsons™ on a virtual reality roller coaster ride.
When liquidation proceeds are returned to the Pool, the onCollateralLiquidated callback function is invoked.