With Bend, NFT holders will now be able to actively participate in the DeFi ecosystem. However, it also exposes the protocol to financial contagion. NFT collateral used in the protocol affects the protocol at its core, in particular NFT projects accepted as collateral which safeguard the solvency of the protocol. To ensure a currency holds a reasonable amount of risk, we investigate five different parameters.
Refer to the NFT Performance Map designed by nonfungible.com, five key metrics will be involved.
- Trade Volume (Number of sales)
- Asset value (Average asset sales value)
- Interactions (Number of dapp transactions, including bids and other interactions)
- Community (Number of unique wallets interacting at the dapp level)
- Retention (Percentage of how many days a wallet is active in the time period, for example a retention rate of 14.3% indicates that users are only active one day of the week)
The table below shows a summary of the latest values.
| Name | Symbol | Collateral Ratio | Liquidation Threshold | Liquidation Bonus | Redeem Duration | Auction Duration | Redeem Fine |
|---|---|---|---|---|---|---|---|
| CryptoPunks | CryptoPunks | 40% | 90% | 5% | 48 hours | 48 hours | 1% |
| Bored Ape YC | BAYC | 40% | 90% | 5% | 48 hours | 48 hours | 1% |
| Doodles (TBC) | DOODLE | 30% | 90% | 5% | 48 hours | 48 hours | 1% |
| Cool Cats (TBC) | COOL | 30% | 90% | 5% | 48 hours | 48 hours | 1% |
| Mutant Ape YC (TBC) | MAYC | 30% | 90% | 5% | 48 hours | 48 hours | 1% |
| CLONE X (TBC) | CLONEX | 30% | 90% | 5% | 48 hours | 48 hours | 1% |
| Azuki (TBC) | AZUKI | 30% | 90% | 5% | 48 hours | 48 hours | 1% |
| CyberKongz (TBC) | KONGZ | 30% | 90% | 5% | 48 hours | 48 hours | 1% |
| World of Women (TBC) | WOW | 30% | 90% | 5% | 48 hours | 48 hours | 1% |
CryptoPunks and Bored Ape YC are the recognized blue chips which are supported as collaterals when Bend officially launches. There will be 4 more NFTs selected as the first batch of NFT collaterals with governance. Those are Mutant Ape YC, Cool Cats, Doodles, CLONE X, Azuki, World of Women and CyberKongz.