1. How to borrow
Borrow ETH instantly with bluechip NFTs
NFT holders can borrow and repay ETH anytime. BAYC, CryptoPunks, Moonbirds, Azuki, MAYC, CloneX, Doodles, and Space Doodles are supported as collateral.
BendDAO website: www.benddao.xyz
1.2. Connect your wallet and sign
1.3. Select an NFT or NFTs as collateral
1.4. Enter the borrowed amount
1.1. Click “Borrow ETH”
1.2. Connect your wallet and sign
1.3. Select an NFT or NFTs as collateral
Available to borrow: indicates the maximum amount you can borrow with your NFT. As shown in the chart: CloneX can borrow up to 2.47E.
Available to borrow = Floorprice * Collateral rate.
Information on collateral rates can be found at https://docs.benddao.xyz/portal/risk/nft-risk-parameters
1.4. Enter the borrowed amount
The protocol recommends that the borrowed amount is not greater than 95% to avoid transaction failure.
Floor Price: indicates the current floor price of NFT, provided by BendDAO's Blue Chip NFT Oracle, for which you can check the following webpage.https://docs.benddao.xyz/portal/lending-protocol/oracle-price-feeding
Utilization rate: indicates the utilization rate of ETH for all depositors, which determines the dynamic interest rate. For more information, please refer to the following webpage.https://docs.benddao.xyz/portal/lending-protocol/interest-model
Health factor :indicates the health factor of the mortgage NFT, health factor = (floor price * liquidation threshold)/debt (with interest), health value less than 1 will trigger liquidation. For more information, please refer to the following webpage.https://docs.benddao.xyz/portal/faq/liquidation
Available to borrow: Indicates the maximum amount that can be borrowed, available amount = floor price * collateral rate. Check the collateral rates for different NFTs.https://docs.benddao.xyz/portal/risk/nft-risk-parameters
Borrow APR: The APR that represents the interest to be paid during the borrowing period, which is decided by the Utilization rate.
Liquidation price: The price at which collateral is liquidated. Indicates that NFT will be liquidated when the floor price is equal to the liquidation price (i.e., the health value is less than 1). Liquidation price = debt (with interest) / liquidation threshold.
1.5. Approval of Token
Debt Token Approval: indicates that the protocol requires control over the debt token, Debt Token = Debt + Interest, Debt Token cannot be sold or transferred.
NFT Token Approval: indicates that the agreement requires control over your NFT.
1.6. Finish
Once you have completed the approval process, you come to the final step. Click the “Borrow ETH” and the protocol will complete the process of collateralizing the NFT and lending ETH.
At this point, the process of collateralizing our NFT for lending is complete.
Here are two tips:
We can also lend more ETH if the floor price of the collateralized NFT goes up.
There is no expiration date for borrowing.
By the Community Contributor @defiandnft
Last updated
