When the borrower deposits an NFT in Bend DAO, a boundNFT will be minted as a Debt NFT. boundNFT is designed to provide the vault functionality with full security and the same digital self-expression.
boundNFT has the same metadata and token ID as the original NFT you own which means that you can use boundNFT in your wallet for your social media PFP. No one can steal your boundNFT because it’s non-transferable and non-approvable.
This feature lets boundNFT owers claim NFT rewards on other protocols while their NFTs are still used as collaterals or in the custody service.