Subscribe to I'm Lucio
I'm Lucio进入区块链的大门 — — 取消钱包授权（第五讲）
前面我们有讲到不同钱包的使用方法，和如何访问Dapp。对于经常访问Dapp和使用DeFi应用的人们来说，若想在DeFi协议上使用代币，‘’代币授权‘’是经常性的步骤。什么是代币授权？以太坊链、EVM链（BSC/HECO/OKExChain/Polygon等）和波场链上的Dapp大都涉及到合约操作，授权即表示允许该合约地址提取用户的代币。Dapp需要访问代币才能需要对其操作。比如你想在uniswap卖掉WBTC，则需要‘’Approve‘’ Uniswap的智能合约访问你钱包内WBTC的权限，然后才能通过第二笔交易把WBTC转换成其他代币。在钱包上面，你可以看到该授权。为了提升用户体验，减少授权次数，Dapp会要求无限授权，即该智能合约有权对钱包内的某个币种有不限量的转移权限。对于靠谱的知名平台，如uniswap等，不会恶意操作转移用户的钱包资产。如果该Dapp一开始就是恶意的，则该钱包对于已经授权该平台的所有币种都有极大的安全隐患。即便是成熟的项目，也有可能存在漏洞而被攻击者利用。所以一旦用户给Dapp授权，钱包的该代币就会陷入风险。 虽然硬件钱包可以保护私钥，并且没有人能绕过硬...
I'm Lucio进入区块链的大门 — — 网页插件钱包（第三讲）
我们前面讲到了加密货币钱包的概览，上一讲是关于imtoken钱包的使用。本讲的主要内容是Metamask。metamask 有两个版本，一个是在谷歌浏览器chrome的以太坊钱包插件，也是最常用的，另一个是手机的app。这里主要讲最常用的chrome浏览器插件版。 1. 下载谷歌浏览器：https://www.google.com/chrome/ 记住一定要在官网下载，或者在有保障的平台下载，不要下载未知源头下载的谷歌浏览器。 2. 下载metamask的chrome浏览器插件 metamask的官方网站为https://metamask.io/ 点击下载，然后选择Chrome， Install metamask for chrome 这个时候就会跳转到chrome商店然后添加插件到chrome浏览器就可以了。 安装完成后，浏览器的插件栏会出现metamask小狐狸图标，安装完成可以开始使用。 3. 开始使用生成钱包根据引导一步一步走，点击”开始使用”2. 导入或者创建 根据你的钱包习惯，喜欢用自己老的钱包去作为metamask钱包的话，可以直接用助记词导入钱包，在metamas...
I'm Lucio进入区块链的大门 — — 硬件钱包的使用（第四讲）
我们前面讲到了加密货币钱包的概览，imtoken和metamask的使用。本讲的主要内容是硬件钱包 — ledger nano X的使用。 为什么选择Ledger？ Ledger是法国的硬件钱包品牌，是目前销量最大的硬件钱包。产品经过了市场和安全机构的验证，使用方便。Ledger目前有三款产品，是ledger nano S，Ledger nano S plus 和 ledger nano X。Ledger nano S 只能连接电脑端并且最多安装3个币种的app。Ledger nano X 可以连接电脑端，并且可以通过蓝牙连接手机端。存储空间大，可以同时安装几十个app。因为Ledger nano X可以连接手机，适合对于操作频繁的用户购买。Ledger nano S plus则是 Ledger nano S的升级款，也可以同时安装几十个app，但是无法通过蓝牙与手机连接。在这里我推荐用户购买ledger nano S plus 或者ledger nano X，用户可以按需购买。为了保证安全，这里硬件设备只推荐从官网购买，因为无法判定其他经销商的真伪。避免因为买到假的硬件钱包或者...
<100 subscribers
I'm Lucio进入区块链的大门 — — 取消钱包授权（第五讲）
前面我们有讲到不同钱包的使用方法，和如何访问Dapp。对于经常访问Dapp和使用DeFi应用的人们来说，若想在DeFi协议上使用代币，‘’代币授权‘’是经常性的步骤。什么是代币授权？以太坊链、EVM链（BSC/HECO/OKExChain/Polygon等）和波场链上的Dapp大都涉及到合约操作，授权即表示允许该合约地址提取用户的代币。Dapp需要访问代币才能需要对其操作。比如你想在uniswap卖掉WBTC，则需要‘’Approve‘’ Uniswap的智能合约访问你钱包内WBTC的权限，然后才能通过第二笔交易把WBTC转换成其他代币。在钱包上面，你可以看到该授权。为了提升用户体验，减少授权次数，Dapp会要求无限授权，即该智能合约有权对钱包内的某个币种有不限量的转移权限。对于靠谱的知名平台，如uniswap等，不会恶意操作转移用户的钱包资产。如果该Dapp一开始就是恶意的，则该钱包对于已经授权该平台的所有币种都有极大的安全隐患。即便是成熟的项目，也有可能存在漏洞而被攻击者利用。所以一旦用户给Dapp授权，钱包的该代币就会陷入风险。 虽然硬件钱包可以保护私钥，并且没有人能绕过硬...
I'm Lucio进入区块链的大门 — — 网页插件钱包（第三讲）
我们前面讲到了加密货币钱包的概览，上一讲是关于imtoken钱包的使用。本讲的主要内容是Metamask。metamask 有两个版本，一个是在谷歌浏览器chrome的以太坊钱包插件，也是最常用的，另一个是手机的app。这里主要讲最常用的chrome浏览器插件版。 1. 下载谷歌浏览器：https://www.google.com/chrome/ 记住一定要在官网下载，或者在有保障的平台下载，不要下载未知源头下载的谷歌浏览器。 2. 下载metamask的chrome浏览器插件 metamask的官方网站为https://metamask.io/ 点击下载，然后选择Chrome， Install metamask for chrome 这个时候就会跳转到chrome商店然后添加插件到chrome浏览器就可以了。 安装完成后，浏览器的插件栏会出现metamask小狐狸图标，安装完成可以开始使用。 3. 开始使用生成钱包根据引导一步一步走，点击”开始使用”2. 导入或者创建 根据你的钱包习惯，喜欢用自己老的钱包去作为metamask钱包的话，可以直接用助记词导入钱包，在metamas...
I'm Lucio进入区块链的大门 — — 硬件钱包的使用（第四讲）
我们前面讲到了加密货币钱包的概览，imtoken和metamask的使用。本讲的主要内容是硬件钱包 — ledger nano X的使用。 为什么选择Ledger？ Ledger是法国的硬件钱包品牌，是目前销量最大的硬件钱包。产品经过了市场和安全机构的验证，使用方便。Ledger目前有三款产品，是ledger nano S，Ledger nano S plus 和 ledger nano X。Ledger nano S 只能连接电脑端并且最多安装3个币种的app。Ledger nano X 可以连接电脑端，并且可以通过蓝牙连接手机端。存储空间大，可以同时安装几十个app。因为Ledger nano X可以连接手机，适合对于操作频繁的用户购买。Ledger nano S plus则是 Ledger nano S的升级款，也可以同时安装几十个app，但是无法通过蓝牙与手机连接。在这里我推荐用户购买ledger nano S plus 或者ledger nano X，用户可以按需购买。为了保证安全，这里硬件设备只推荐从官网购买，因为无法判定其他经销商的真伪。避免因为买到假的硬件钱包或者...
Subscribe to I'm Lucio
<100 subscribers
Share Dialog
Share Dialog
In the last week, the NFT lending protocol BendDAO has been undergoing a liquidity crisis. A large amount of ETH deposits have been withdrawn over the past week. As of 4 p.m. on August 23, the protocol’s lending utilization rate reached 99.26%, with only 90.03 ETH of liquidity available. This means that the vast majority of ETH depositors will be unable to immediately retrieve their assets from the protocol. The worst appears to be over due to the urgent adoption of a new proposal. We analyze BendDao and the series of events.
Bend DAO is a Decentralized Autonomous Organization (DAO) that addresses collateralized lending and borrowing of NFTs. Its purpose is to collateralize NFTs to borrow ETH for working capital or to deposit ETH and receive deposit proceeds. 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 lending pool to earn passive income, while borrowers can borrow ETH instantly through the lending pool using NFT as collateral. It supports instant NFT-backed loans, Collateral Listing, and NFT Down Payment.
NFT Liquidity
This is how blue-chip NFT holders are able to get the best liquidity on BendDAO.
Instant NFT-backed Loan
BendDAO is the first decentralized peer-to-pool based NFT liquidity protocol. NFT holders are able to borrow ETH through the lending pool using NFTs as collateral instantly, while depositors provide ETH liquidity to earn interest. The leveraged NFT trading is built on instant NFT-backed loans.
Collateral Listing
NFT holders/sellers can choose to instantly get up to 40% of the floor value of the listing before it even sells. The instant liquidity is provided by the instant NFT-backed loan. The buyer will pay off the loan including interest after the deal. Existing borrowers can list the collateral directly on the BendDAO. The balance after deducting debt with interest will be transferred to the borrower (seller) after the deal.
Buy with Down Payment
The buyer may pay a minimum down payment of 60%, depending on the actual price, to buy a bluechip NFT from major NFT marketplaces while initiating a flash loan from AAVE to cover the remainder. The borrowed amount of the flash loan will be repaid through the instant NFT-backed loan on BendDAO. The buyers will automatically become borrowers with the down payment. And borrowers can list their mortgaged NFT for sale as well.
Bend DAO functions like a bank that uses blue chip NFT as a stable asset to give users financial instruments that can be loaned to purchase or used as collateral to borrow. It also opens a pool of interest-bearing deposits to draw in funds to operate the platform.
●Before the BIP#9
Liquidation is generally caused by a severe drop in the price of NFT. On BendDAO, this limit is represented by a “Health Factor” (HF), and liquidation is triggered when the Health Factor is less than 1.
Health Factor = (44 * 90%) / (40 + interests) <1
Health Factor = (Floor Price * Liquidation Threshold) / Debt with Interests.
What is the health factor?
The health factor is the numeric representation of the safety of your deposited NFT against the borrowed ETH and its underlying value. The higher the value is, the safer the state of your funds are against a liquidation scenario.
If the health factor reaches 1, the liquidation of your deposits can be triggered. A Health Factor below 1 may result in liquidity. For a HF = 2, the collateral value vs borrow can reduce by 1 out of 2 — that is, 50%.
The health factor depends on the liquidation threshold of your collateral against the value of your borrowed funds.
Risk level according to health factor:
0.0 < HF < 1.0: Dangerous, borrower maybe lose collateral if the debt is not repaid timely.
1.0 <= HF <= 1.5: Risky, borrower should repay partly the debt timely.
1.5 < HF < 2.0: Careful, borrower should pay attention and monitor the debt timely.
2.0 <= HF: Safe, borrower no need to worry and keep the debt last.
Liquidation will be triggered if the NFT loan’s health factor is below 1.
● Reason for liquidation
The NFT market has recently entered bear territory, with daily trading volume hovering at low levels for a long time and daily trading users flying down. The slump in the NFT market is the main reason for this current crisis involving BendDAO. The main price support for NFT is consensus, and when there is a lack of confidence in the NFT market, mass withdrawals could occur, similar to the reasons behind the instant collapse of Luna in May. However, the NFT market’s liquidity cannot be compared to that of tokens. From the perspective of users pledging blue chip NFTs, a lack of confidence in the NFT market might prove a good way to obtain timely NFT liquidity through a lending agreement, which is also equivalent to obtaining a partial price protection hedge.
In terms of BendDAO’s business, Bend only provides lending services if certain blue-chip NFTs are used as collateral, namely BAYC, CryptoPunks, MAYC, Doodles, Space Doodles, CloneX and Azuki. Among these blue chip NFTs, Big Monkey BAYC and Little Monkey MAYC form the majority, with over 83% of the collateral value in Bend.
At the time of the crisis, there were 230 BAYCs and 264 MAYCs pledged in Bend, and these BAYCs and MAYCs were most responsible for the creation and resolution of the crisis in BendDAO. Currently there are 22 BAYCs and 34 MAYCs in BendDAO with health factors below 1.1. Even if the price of NFT does not fall, the health factor will continue to fall over time due to the current high borrowing rates.
On the other hand, due to the limitations of BendDAO’s deposit and withdrawal mechanism, a large number of users are waiting to withdraw their deposits in BendDAO, and there are no more funds available in BendDAO, resulting in a substantial run on BendDAO. Despite having a high APR, users are not depositing in Bend. BendDAO’s rate regulation mechanism seems to have failed.
● How bendDAO solved the crisis
The BendDAO community has released a new proposal, BIP#9, which aims to address the liquidity crisis by modifying some of the parameters. These include adjusting the liquidation threshold to 70%, adjusting the auction cycle to 4 hours, adjusting the prime interest rate to 20%, and allowing the BendDAO community to vote on how to handle bad debts when they occur. In addition, the number of ETH floating bad debts will be added to the user interface and the total amount of interest will be displayed on the home page. Future protocol level improvements include support for collateral quotes in BendDAO, support for collateral pending orders as much as possible with access to transactions, and attempts to support down payments for auctions.
This proposal would lower the clearing threshold for NFTs and speed up the clearing of NFTs, thereby attracting more arbitrageurs to auction arbitrage. For those who are bullish on blue chip NFT, there will be plenty of opportunities to pick up the slack on BendDAO. On the other hand, however, if the proposal passes, there could be a significant sell-off of NFTs in the market. According to the health factor formula, if the liquidation threshold is set at 70%, collateral with a current health factor below 1.28 will be at risk of liquidation with the NFT floor price unchanged, and even if the floor price increases, the increase will hardly hedge out the impact of the liquidation threshold adjustment on the health factor. a large number of liquidated NFTs could pile up in BendDAO, and the impact on BendDAO may have a large pile of liquidated NFTs and a large impact on market confidence. The unique trading properties of NFTs can cause dramatic floor price swings due to small amounts of selling pressure.
●Current Status
The BendDAO website has been updated to show potential profits in the Available to Auction section to attract arbitrageurs to.
BendDAO has solved this liquidity crisis by passing the proposal quickly and effectively. BendDAO will anticipate risk and respond accordingly further down the line.
Written by: Lucio Lyu
Twitter: @imLucio_eth
In the last week, the NFT lending protocol BendDAO has been undergoing a liquidity crisis. A large amount of ETH deposits have been withdrawn over the past week. As of 4 p.m. on August 23, the protocol’s lending utilization rate reached 99.26%, with only 90.03 ETH of liquidity available. This means that the vast majority of ETH depositors will be unable to immediately retrieve their assets from the protocol. The worst appears to be over due to the urgent adoption of a new proposal. We analyze BendDao and the series of events.
Bend DAO is a Decentralized Autonomous Organization (DAO) that addresses collateralized lending and borrowing of NFTs. Its purpose is to collateralize NFTs to borrow ETH for working capital or to deposit ETH and receive deposit proceeds. 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 lending pool to earn passive income, while borrowers can borrow ETH instantly through the lending pool using NFT as collateral. It supports instant NFT-backed loans, Collateral Listing, and NFT Down Payment.
NFT Liquidity
This is how blue-chip NFT holders are able to get the best liquidity on BendDAO.
Instant NFT-backed Loan
BendDAO is the first decentralized peer-to-pool based NFT liquidity protocol. NFT holders are able to borrow ETH through the lending pool using NFTs as collateral instantly, while depositors provide ETH liquidity to earn interest. The leveraged NFT trading is built on instant NFT-backed loans.
Collateral Listing
NFT holders/sellers can choose to instantly get up to 40% of the floor value of the listing before it even sells. The instant liquidity is provided by the instant NFT-backed loan. The buyer will pay off the loan including interest after the deal. Existing borrowers can list the collateral directly on the BendDAO. The balance after deducting debt with interest will be transferred to the borrower (seller) after the deal.
Buy with Down Payment
The buyer may pay a minimum down payment of 60%, depending on the actual price, to buy a bluechip NFT from major NFT marketplaces while initiating a flash loan from AAVE to cover the remainder. The borrowed amount of the flash loan will be repaid through the instant NFT-backed loan on BendDAO. The buyers will automatically become borrowers with the down payment. And borrowers can list their mortgaged NFT for sale as well.
Bend DAO functions like a bank that uses blue chip NFT as a stable asset to give users financial instruments that can be loaned to purchase or used as collateral to borrow. It also opens a pool of interest-bearing deposits to draw in funds to operate the platform.
●Before the BIP#9
Liquidation is generally caused by a severe drop in the price of NFT. On BendDAO, this limit is represented by a “Health Factor” (HF), and liquidation is triggered when the Health Factor is less than 1.
Health Factor = (44 * 90%) / (40 + interests) <1
Health Factor = (Floor Price * Liquidation Threshold) / Debt with Interests.
What is the health factor?
The health factor is the numeric representation of the safety of your deposited NFT against the borrowed ETH and its underlying value. The higher the value is, the safer the state of your funds are against a liquidation scenario.
If the health factor reaches 1, the liquidation of your deposits can be triggered. A Health Factor below 1 may result in liquidity. For a HF = 2, the collateral value vs borrow can reduce by 1 out of 2 — that is, 50%.
The health factor depends on the liquidation threshold of your collateral against the value of your borrowed funds.
Risk level according to health factor:
0.0 < HF < 1.0: Dangerous, borrower maybe lose collateral if the debt is not repaid timely.
1.0 <= HF <= 1.5: Risky, borrower should repay partly the debt timely.
1.5 < HF < 2.0: Careful, borrower should pay attention and monitor the debt timely.
2.0 <= HF: Safe, borrower no need to worry and keep the debt last.
Liquidation will be triggered if the NFT loan’s health factor is below 1.
● Reason for liquidation
The NFT market has recently entered bear territory, with daily trading volume hovering at low levels for a long time and daily trading users flying down. The slump in the NFT market is the main reason for this current crisis involving BendDAO. The main price support for NFT is consensus, and when there is a lack of confidence in the NFT market, mass withdrawals could occur, similar to the reasons behind the instant collapse of Luna in May. However, the NFT market’s liquidity cannot be compared to that of tokens. From the perspective of users pledging blue chip NFTs, a lack of confidence in the NFT market might prove a good way to obtain timely NFT liquidity through a lending agreement, which is also equivalent to obtaining a partial price protection hedge.
In terms of BendDAO’s business, Bend only provides lending services if certain blue-chip NFTs are used as collateral, namely BAYC, CryptoPunks, MAYC, Doodles, Space Doodles, CloneX and Azuki. Among these blue chip NFTs, Big Monkey BAYC and Little Monkey MAYC form the majority, with over 83% of the collateral value in Bend.
At the time of the crisis, there were 230 BAYCs and 264 MAYCs pledged in Bend, and these BAYCs and MAYCs were most responsible for the creation and resolution of the crisis in BendDAO. Currently there are 22 BAYCs and 34 MAYCs in BendDAO with health factors below 1.1. Even if the price of NFT does not fall, the health factor will continue to fall over time due to the current high borrowing rates.
On the other hand, due to the limitations of BendDAO’s deposit and withdrawal mechanism, a large number of users are waiting to withdraw their deposits in BendDAO, and there are no more funds available in BendDAO, resulting in a substantial run on BendDAO. Despite having a high APR, users are not depositing in Bend. BendDAO’s rate regulation mechanism seems to have failed.
● How bendDAO solved the crisis
The BendDAO community has released a new proposal, BIP#9, which aims to address the liquidity crisis by modifying some of the parameters. These include adjusting the liquidation threshold to 70%, adjusting the auction cycle to 4 hours, adjusting the prime interest rate to 20%, and allowing the BendDAO community to vote on how to handle bad debts when they occur. In addition, the number of ETH floating bad debts will be added to the user interface and the total amount of interest will be displayed on the home page. Future protocol level improvements include support for collateral quotes in BendDAO, support for collateral pending orders as much as possible with access to transactions, and attempts to support down payments for auctions.
This proposal would lower the clearing threshold for NFTs and speed up the clearing of NFTs, thereby attracting more arbitrageurs to auction arbitrage. For those who are bullish on blue chip NFT, there will be plenty of opportunities to pick up the slack on BendDAO. On the other hand, however, if the proposal passes, there could be a significant sell-off of NFTs in the market. According to the health factor formula, if the liquidation threshold is set at 70%, collateral with a current health factor below 1.28 will be at risk of liquidation with the NFT floor price unchanged, and even if the floor price increases, the increase will hardly hedge out the impact of the liquidation threshold adjustment on the health factor. a large number of liquidated NFTs could pile up in BendDAO, and the impact on BendDAO may have a large pile of liquidated NFTs and a large impact on market confidence. The unique trading properties of NFTs can cause dramatic floor price swings due to small amounts of selling pressure.
●Current Status
The BendDAO website has been updated to show potential profits in the Available to Auction section to attract arbitrageurs to.
BendDAO has solved this liquidity crisis by passing the proposal quickly and effectively. BendDAO will anticipate risk and respond accordingly further down the line.
Written by: Lucio Lyu
Twitter: @imLucio_eth
No comments yet