Think twice when listing Gaming NFTs (Personal view about NFT category risk)

We have different assets in NFTs:

  1. PFP like cryptopunks
  2. Art like Chromie Squiggles
  3. Money NFTs like Uniswap LP
  4. Gaming assets like otherdeeds

The lending business depends on the consensus of the assets, since 100% of the lending revenue is distributed to veBend as rewards of our long run builders to faster the adoption of providing liquidity
of web3 data, veBend holders are 100% of the responsible for the assets on BendDAO.

So what is the upside and downside of listing NFTs in BendDAO, upside is TVL and revenue which makes BendDAO grow, the downside is the bad debts is not liquidated and do damaging for BendDAO, cos it will make nobody is going to join the liquidation and leave the bad debt and
depositors bank run.

So the only thing that important for lending business, is how decentralized the assets listed in lending protocol, cos as long as the liquidation works, lending protocol are fine with assets going to zero slowly, the only situation that dangerous is the suddenly death of the assets.

Now I will share some thoughts about the assets 4 above:

  1. PFP
    PFP is the most solid utility in these 4 assets. People using for avatar in social media for attention economy, the art of a success PFP project should not be bad. If a PFP project is running for a long time, and the art of the PFP is welcome in community. Many people using the PFP as twitter avatar, the longer the user use the PFP as avatar, the harder he will change the avatar as identity, individual branding make more diamond hands and community driven instead of project creator driven, we see how doodles and clonex drop from 10-20+ eth to 2+eth but liquidated well. Cos when the community is still there, some of the community members will join the auction decentralized, we don’t need to worry about the project run out of money, so it’s quite solid.

  2. Art NFT
    Although art is not so utility solid like PFP, art is quite decentralized, some of the web3 people even thing that cryptopunks is more art than PFPs. Even BendDAO community vote no for the first potential art NFT Chromie Squiggles listed. The good thing is once the art is set, it don’t need the project creator to keep promoting it, it’s more decentralized.

  3. Money NFTs like Uniswap LP
    It depends on the LP token’s project and need to deal with ERC20 oracle attack.

  4. Gaming NFTs
    It’s the most dangerous one, once the game is over the gaming server offchain is off, all the gaming NFTs will have 0 utility, all the game assets either NFTs or ERC20 token will goes to zero will soon, we need to be careful when voting for listing gaming NFTs.

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i think we should not be afraid of risk, bend should be the biggest nft lending protocol, we should have it all, continue to maintain current model with PFP assets also we should open more lending p2p with higher risk assets like gaming nfts

Yes I agree with that p2p is good for higher risk assets.