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BendDAO, the biggest NFT lending platform by market cap, hit new all-time highs final month on the backs of 4,399 particular person loans, lots of them Azukis, Mutants and BAYC.
![(Source: Twitter)](https://cryptoslate.com/wp-content/uploads/2023/02/Fo7NYGDaEAYQqXa.png)
Twitter person @JKrantz speculated that the sudden all-time excessive is likely to be as a result of debtors are getting paid the next curiosity to take out loans on their NFTs with the native BEND token, which has seen a spike in progress during the last month.
![(Source: Twitter)](https://cryptoslate.com/wp-content/uploads/2023/02/Screenshot-2023-02-14-at-6.57.12-PM.png)
Within the final 30 days, BEND has been up 377.5%, which some say is the rationale why loans are flocking to the platform, as debtors can yield a a lot excessive fee of return on their property in the event that they settle for the native BEDN token over ETH.
BendDAO is taken into account a “peer-to-pool” lending protocol. Although extra lately, newer NFT lending websites equivalent to pwn.xyz have sprung up. Not like BendDAO, pwn.xyz doesn’t have pricing oracles and seeks to as a substitute facilitate the borrower and the lender to set the phrases of the mortgage themselves. In its present model, it additionally doesn’t cost any charges (BendDAO at the moment fees a price equal to 30% of the overall curiosity revenue collected on NFT loans).
BendDAO is by far the biggest NFT lending protocol by market cap. It at the moment has over $200 million price of property locked up on its platform, greater than 4x of what its opponents have mixed.
BEND is at the moment buying and selling at $0.0265.
![(Source: DefilIlama)](https://cryptoslate.com/wp-content/uploads/2023/02/Screenshot-2023-02-14-at-7.01.43-PM.png)
The protocol’s spike in exercise comes on the heels of a file month of loans within the NFT lending trade writ massive.
In Jan., BendDAO noticed an ATH when it comes to month-to-month mortgage quantity and the variety of loans. A complete of 17.9K ETH, price roughly $28 million, unfold throughout a complete of 4,399 loans.
![(Source: DefilIlama)](https://cryptoslate.com/wp-content/uploads/2023/02/Screenshot-2023-02-14-at-7.04.29-PM.png)
The nice, the dangerous and the ugly with NFT lending protocols
In Aug. 2021, BendDAO weathered a financial institution run that noticed 15,000 ETH withdrawn from the contract inside a 48-hour time interval.
Information that might have ended up calamitous for bendDAO, on condition that it had many bid-less debt-ridden NFTs listed on its platform, lots of which had extraordinarily distressed flooring costs throughout that point as nicely.
Conditions can come up for big NFT lenders like BendDAO when there’s a broader market downturn and lenders interact in competitors to retrieve their funds on NFTs with distressed flooring costs.
In such instances, restoration of funds could also be unimaginable.
Nevertheless, the reverse can be attainable. A lender could also be given an asset that turns into price considerably extra in the course of the mortgage maturation interval. And within the case of a default, the lender might find yourself with an NFT price much more than for what it was collateralized.
The sector general continues to do nicely.
In January, CryptoSlate reported that NFT lending had general its highest month-to-month quantity all through January 2023. Exterior of the market chief, BendDAO, different platforms equivalent to NFTfi, X2Y2, and Arcade made up an extra $44.8 million that month.
![(Source: DefilIlama)](https://cryptoslate.com/wp-content/uploads/2023/02/Screenshot-2023-02-14-at-7.01.58-PM.png)
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