News broke out on Twitter after customers shared screenshots of bidding on the BoredApe NFT.
The current base price of BoredApe is 72ETH, and BAYC#533, which is a 66.95ETH mortgage, is now up for auction.
General Motors
The first BAYC settlement auction on BendDAO has started as the lower limit has been lowered to 72
, starting at 68.4e...
Any takers, or will this be Domino's first bad debt?
Although no one has bid on NFT yet, it seems that several other BoredApes holders also borrowed about 60 ETH in this agreement.
BendDAO is one of the popular peer-to-peer NFTFi protocols, which allows everyone to borrow ETH using the reserve price of its NFT. Generally, NFT holders can borrow up to 40% of the reserve price.
In total, the NFTs used as collateral for BendDAO are worth more than $59 million. There are 272 BAYC on the platform, that is, 2.8% of the collection is collateral, and there are also 10%. 6% of the collection of MutantApes.
Currently, BendDAO alone has 32,267ETH ($59,048,610) of NFTs used as collateral for loans
For the first time so far, many of them are in serious settlement danger
No one is discussing the market's biggest risk thread about NFTs.
Due to the low health factor of some of these NFTs, the settlement risk is higher. BAYC are in the danger zone, which is a health index below 1, which means they will be auctioned off.
Settlement could further reduce BAYC floor price
The concern is that if these BAYC auctions could further lower the reserve price, leading to a mass settlement market for NFTs.
However, many people still worry about the possibility of NFT settlement similar to the collapse of Celsius or Navigator.
A few MutantApes auctions have taken place so far, but there could be more if the lender doesn't repay the loan and is settled.
BendDAO founder is also close to settlement
Ironically, BendDAO's own founder was dangerously close to bidding on one of the BoredApes holders.
Another debtor who seemed to attract attention was Franklin, who lent 1,000,000 to 60 bored apes. ETH. While many feared their settlement could have a seismic impact on the market, he clarified that he had repaid the borrowing.
I currently owe 0ETH to BendDAO and have 60 apes in my wallet. I borrowed 10245.37ETH from them and paid it off, plus 9.13ETH total interest. If I owed 10kETH, I wouldn't pay it back and would be shuddering to be on the island right now. A short space from now on.
However, many would compare NFTs to the collapse of Celsius or Voyager, and the settlement potential remains worrisome.
