How BendDAO works

BendDAO is a decentralized lending platform that uses NFTs a collateral to loan ETH to borrowers. Users can deposit high-valued NFTs onto the platform and receive up to 40% of the asset's floor price as a loan in ETH. The floor price refers to the lowest sales price for a NFT collection. Users who deposit and lend out ETH earn high interest on those deposits. The protocol uses the same model as Aave's aTokens with its bendETH. bendETH is the interest-bearing token that is minted and burned upon deposit and withdrawal. Its value is pegged to the value of the corresponding deposited asset at a 1:1 ratio.

How BendDAO makes money

BendDAO charges a trading fee on each NFT's sales price (2%), a royalty fee of the sales price (0-10% paid to collection creator), and a flash loan fee (0.09% of the borrowed debt paid to Aave).

How you make money on BendDAO

You can earn yield by depositing ETH on the platform to be lent out to borrowers. BEND stakers (veBEND) also receive an admin fee that is porportional to the their veBEND balance relative to the toal veBEND supply. The admin fee represents 30% of the total interest income collected on all NFT loans. All fees are paid in ETH and distributed to veBEND holders each week.