BendDAO Contract Was Drained Overnight – Left With 15 ETH

BendDAO contract was drained overnight and was left with just 15 Wrapped Ether (wETH) to pay lenders and 15,000 ETH left to be paid to the lenders.

In a Twitter thread, researcher NFTStatistics.eth analyzed the issue, stressing that NFT borrowers on the site should now pay 100% interest on the ETH they borrowed. Furthermore, the debt positioned against NFTs is increasing.

BendDAO Contract Was Drained Overnight

Furthermore, the researcher found that many of the NFTs that were utilized as collateral and failed have no bids at the moment. In addition, there are additional NFTs on the platform’s alert list, which are NFTs ready to default and go to auction due to declining NFT floor prices or mounting debt and high-interest rates.

gm

While you were asleep the BendDAO bank run finally happened

15 wETH ($25,081) left in the wallet that had 18,000 ETH ($29,160,000) in it just 48 hours ago

Still 14,500 wETH owed to lenders….

Absolute shitshow pic.twitter.com/RKkdqVAVIf

— Cirrus (@CirrusNFT) August 21, 2022

BendDAO’s co-founder stated that their team is working on a proposal to adjust parameters inside the NFT lending platform. The update will be implemented 24 hours after it has been approved through the voting process.

During the situation, a Twitter user seized the chance to mock the site, pointing out that even BendDAO’s co-founder is on the verge of being liquidated by their own loan platform.

Analysts suspected last week that a $55 million wave of NFT liquidations was on the way to collect loans on BendDAO. The issue, according to Double Studio founder DoubleQ, may result in a “death spiral” for the whole NFT market and the Bored Ape Yacht Club (BAYC) ecosystem.

Meanwhile, the larger NFT industry is not faring much better. At the present, since BAYC and Mutant Ape Yacht Club (MAYC) collecting floor prices have plummeted, the newly created GameStop NFT marketplace has taken a hit, with daily fee earnings falling below $4,000.

GameStop NFT Marketplace Takes A Hit

As has been reported by DCForecasts, the GameStop NFT marketplace has taken a hit with the daily fee revenue falling under $4,000 as similar problems infect the broader NFT market. This has been a sharp decline for GameStop NFT marketplace, which launched just last month.

According to data from DappRadar, it would appear that prices have dropped down to $2,00.

But, GameStop wasn’t the only one to take a hit. According to other reports, the Bored Ape Yacht Club floor also fell 19% from the beginning of this month, as we have stated above.