BIP#17 Add Additional Tokens for Borrowers To Borrow

Hey BendDAO community,

Having been a long time lender on BendDAO as well as other NFT lending protocols (like Nftfi, Arcade, Pwn etc) I have an improvement that I think would have a really positive impact on the protocol, if enacted.

Many people like borrowing ETH against their NFTs. Most NFTs are priced in ETH, so it’s a natural asset to borrow against. However, there are a lot of borrowers who prefer stablecoins, so I propose adding a vault of either DAI or USDC, that people can choose to borrow from instead of the ETH vault.

I think ultimately, it would be highly utilized, and would bring additional TVL to the protocol, while also attracting more lenders, and potentially new borrowers.

As you can see from the below examples, there are lots of people electing to borrow stablecoins instead of ETH against their NFT assets. These are just a few examples but there are many more.

I also think seeding it with a similar amount of rewards to the ETH vault would be great to attract initial liquidity.

  • Add USDC or DAI Vault for lenders / borrowers to utilize
    Use same risk parameters as the ETH vault, calculate floor / liquidation prices in stablecoins as well so there’s no additional risk for lenders
    Add BEND rewards to bootstrap the vault, and adjust as needed based on APR/APY for people lendingto /borrowing from it

Ultimately, these are just my thoughts, but would be eager to get feedback or additional thoughts but I’d like to open it up for discussion and hopefully get it implemented in the near future.

1 Like

Will be good to kickstart ERC-20 Tokens borrowing and lending functionality, as what ParaSpace has implemented.

Current Supply/Borrow tokens offered on ParaSpace:

More services = more traffic, cross-sell benefit,

yeah agreed, I posted this not knowing about ParaSpace but there is clearly demand for it