# Project Briefing- Bend (BEND) By [ Crypto.Fanatics](https://paragraph.com/@141545) ยท 2022-03-29 --- ![](https://storage.googleapis.com/papyrus_images/55c42acd1e8e5dbfa41facc99b4b102ae668cf4beecff4744815c7984adde2e3.png) Bend is a decentralized, non-custodial NFT-backed lending protocol in which users can participate as depositors or borrowers. Depositors provide ETH liquidity to the loan pool to earn interest, and borrowers can use NFT as collateral to borrow ETH through the loan pool. token $Bend is an AAVE for blue-chip NFT holders. Safu has 2,620 ETH locked up at 8 days of operation (NFT pledge value of 1,754.79 ETH and deposit reserve of 865.66 ETH). The deposits yield 80.26% annualized and the borrowing yield is 215.55%. ![](https://storage.googleapis.com/papyrus_images/d2a19155c580c4c1185c81fd212851bb708b3a3ac0b1bc09e17f0667eeca776d.png) Project Interpretation ---------------------- ### Borrowing Bend is a peer-to-peer pool-based NFT liquidity protocol that allows borrowers to bind NFT to separate tokens (boundNFT) through the Bend protocol, forming a single collateral. 1.Initiate an instant NFT lending contract to lend ETH 2.Repay ETH, maintaining the NFT collateral ratio 3.Retrieving ETH NFT is converted into non-transferable boundNFT (part of ERC721) through the lending process, avoiding the risk of theft. bondNFT also has the same digital self-expression feature that does not prevent NFT avatars from being used on Web2 social media. the portion of NFT that is generated during the pledge period that is airdropped into the contract is collected by Bend and distributed to bondNFT holders, while the portion of the reward that needs to be actively claimed is collected and distributed to bondNFT holders. The portion of the reward that requires an active claim can be completed by the borrower with a single click via a backend Flash Claim. Borrowers have a 48-hour liquidation protection period to repay the loan. When the debt/NFT floor value is greater than 90%, the collateralized NFTs will be liquidated through an auction, which cannot be less than the total debt amount. From the platform's perspective, the 48-hour liquidation protection is a way to protect the platform by helping to improve the liquidity of NFT and funds. Avoid the loss of the platform due to the instability of the value of NFT, if the NFT falls too fast, the participants in the auction is also bound to reduce, or even no one asked; if it falls to a price lower than the lender to the loan, the lender is very likely to not pay back the money. While the NFT floor price is still relatively stable (health factor = 1), start the auction process, so that lenders take the opportunity to redeem NFT and sell it in time to at least get more money than the loan, or let other users who want to buy can participate in the auction in time to reduce the risk of the platform. The 48-hour liquidation protection mechanism, which protects both the lender and the platform, and the mechanism for NFT auctions and redemptions make Bend a decentralized and sustainably operated platform. ### Deposits Depositors can deposit or withdraw ETH assets to a reserve pool to earn income through liquidity. ### Flash Claim A technical feature added by Bend that allows NFTs to Flash Claim their own NFTs whenever they are returned to the protocol in a transaction block. if the process is not completed, the transaction is effectively revoked, thus protecting the security of the NFT. While the NFT is still in the pledge pool, this feature allows borrowers to Flash Claim NFT rewards on other protocols with one click through the back office. Users are guaranteed to receive their airdrop and Claimable assets, and can also participate in related mint events. ### Airdrop and IFO On March 21, BendDAO tweeted the launch of $BEND's Airdrop and IFO. 5% of $BEND's supply will be airdropped to NFT players. In addition, pledgers of $BEND will vote for 4 of the 7 blue chip NFTs that will be backed by the initial ETH lending pool. BendDAO is prepared to airdrop 500M $BEND to one of the following. 1.Blue chip NFT holders: Crypto Punks, Bored Ape YC, Mutant Ape YC, Cool Cats, Doodles, CLONE X, Azuki, World of Women and CyberKongz. 2.OpenSea Active Traders. 3.NFTfi active traders. 4.Those who have participated in the Bend Rinkeby NFT lending test. For more details on event dates: [https://docs.benddao.xyz/portal/airdrop](https://docs.benddao.xyz/portal/airdrop) ![](https://storage.googleapis.com/papyrus_images/7620657c1237c8fc45b1029b48295ed20017248b919c014c0ef222dce28b16bf.png) ![](https://storage.googleapis.com/papyrus_images/57416184969a02c698e3708a9f17f2f06f3a4b05deb92ca06407becec4911c38.png) $BEND's IFO serves as a public ETH fundraiser, with 66% of the ETH raised going to the project's ETH lending pool and 34% to the Bend team's subsequent development. The rules for this IFO are: 1.Fair Launch. 2\. Allocation of 1 ETH amount per participant. 3.1ETH = 333,333BEND. 3\. Unsold BEND is used for DAO finance. This IFO, there is no whitelist, no KYC, decentralized wallets with Ether money can participate. The longer the lock, the more $veBend you will get. There are two main uses of veBend: 1.Vote on votes 2.Earning income Estimated income for veBend holders ![](https://storage.googleapis.com/papyrus_images/7d55cd909dfa4f95bc513aaae4b6d6b196564b92f87bff089a28263b3113ed44.png) ### Prophecy machine price feedback (Oracle) The Bend oracle operates by an off-chain node capturing the raw floor price of the NFT from the Opensea trading market, filtering the raw floor price data to isolate the unreasonable data, and using TWAP (Time Weighted Average Price Algorithm) to filter price fluctuations in the market to ensure reasonable prices. Finally, compare the on-chain price with the latest floor price to determine whether to upload the price to the contract. The reason why only blue chip NFT assets are supported is because the floor price of blue chip NFT is not easily manipulated. Bend will work with the ChainLink team to complete the prophecy machine price feedback. ![](https://storage.googleapis.com/papyrus_images/e76974defd00c4792f7515666299f2995a19a12b39427646820a7d266d0a2581.png) Economic Model -------------- Token symbol: $BEND Initial circulation: 10 billion (10,000,000,000) ### Token Allocation 1.Development Team: 21% 2.IFO: 10% 3.Treasury Reserves: 21% 4.Airdrop: 5% 5.UniSwap LP Incentive: 3% 6.Deposit/Borrowing Incentive: 40% ![](https://storage.googleapis.com/papyrus_images/3b62a9c91290a3702c15bae2d17efbd761271ffc9c25804f1a492c5cf2adb648.png) ![](https://storage.googleapis.com/papyrus_images/090e1edf0521ec1946f4dade1b03590b29ef575f7c8ab11e675dc19fccb2ad83.png) Token Function: Facilitates the liquidity of the NFT platform, improving the decentralization, fairness, and scalability properties of the platform. BendDAO ------- Bend was created by an anonymous team and is governed by token holders through community forum discussions and voting. Security and Auditing --------------------- Audit report: [https://www.certik.com/projects/bend-dao](https://www.certik.com/projects/bend-dao) Bend puts both funds and NFT in an open source smart contract that is formally verified and audited by a third party audit, and users can withdraw their funds at any time. The Bend team has customized models for assessing the market risk of the project, and Bend's security module has been stress tested with basic simulations that show that Bend can remain solvent under extreme market conditions, representing Bend's excellent risk management. ![](https://storage.googleapis.com/papyrus_images/199478ea7649a5c2ce3d1d38b82b29d0bfe253e0d5a51ea4634b78154a764a4c.png) Roadmap ------- 2021-Q4 Idea Creation Team Building Product Prototyping Test network launch 2022-Q1 Airdrop IFO Security Audit Main Network Launch DAO Governance and Voting More NFT online proposals 2022-Q2 DAO Governance Change Proposal Ecosystem Building Proposal boundNFT Trading Platform 2022-Q3 P2P NFT Lending Proposal P2P NFT Rental Proposal Pooled NFT Rental Proposal NFT Cross-Chain Proposal 2022-Q4 No-Permit Pooling Proposal Generic Web3 Data Mobility Welcome to join #NowhereDAO, a free information and token information sharing platform: [https://discord.gg/JHXpb8KDzk](https://discord.gg/JHXpb8KDzk) --- *Originally published on [ Crypto.Fanatics](https://paragraph.com/@141545/project-briefing-bend-bend)*