BendDAO is a major project in the NFT Lending segment, allowing users to borrow with NFT collateral. The project is famous for having almost caused a big crash for the NFT market, more details can be read at: BendDAO almost became 3AC, Celcius of the NFT segment.
Last night, BendDAO released a new proposal for the development of a staking pool for ApeCoin – the token of the largest NFT suite in the market.
ApeCoin Staking Mechanism
ApeCoin is the token of the Bored Ape Yacht Club ecosystem, which has no utility but voting rights in the ApeCoin community. But recently, Yuga Labs developed ApeCoin staking that allows NFT holders of the BAYC universe to combine NFT and $APE to boost staking rewards. Thereby creating a growth momentum for $APE this period. Specifically, there will be 4 stake pools:
Pool 1: Stake only $APE.
Pool 2: NFT BAYC + $APE (1 NFT + 10,094 $APE).
Pool 3: NFT MAYC + $APE (1 NFT + 2,042 $APE).
Pool 4: NFT BAKC + $APE (1 NFT + 856 $APE).
The total 100M $APE is divided among the pools in different proportions. Read more about ApeCoin Staking and the growth potential of $APE.
Recommendation of BendDAO
BendDAO will create an intermediary tool called BendEarn. Here, BendEarn supports pairing $APE and NFTs from different holders to create enough combos and stakes.
For example, A has 1 NFT BAYC but does not have enough $APE, B has only APE tokens. ➡ A and B will jointly send assets to BendDAO for the project to stake, take a part of the fee and divide the reward for A & B.
How it works: BendDAO offers 4 pools similar to the one above, and users deposit assets into the pool they want to stake. The pairing mechanism is first - come - first - serve, meaning those who deposit assets first will be paired together. Excess $APE will be staked in the private pool $APE.
Fee: The intermediary fee that BendDAO receives is 3% when the user receives the reward, as this is a recommendation, it is still subject to change. This fee will be swapped from $APE to $BEND and put into BendDAO's fund.
BendDAO's Proposal Analysis
- With the $APE price now at $5.5, the reward will be huge ~ $550M. While most pools also have large APRs of 300 - 500%, there will be a large number of investors and sharks entering the farm when this stake starts. However, current data shows that holders of BAYC and MAYC are short of more than 100 million $APE to be able to pair and stake.
➡ Shows that the demand for staking pairing is very large, and BendDAO is hitting the right market demand. As the leader and also a major project in the NFT segment, BendDAO will quickly monopolize this segment.
2. BendDAO is also an NFT Lending project and owns a lot of collateral. Data shows that about 84% of loans come from BAYC and MAYC mortgages, and the project can use this amount of NFT for staking ➡ Create a great advantage when pairing with excess $APE ➡ Just have Higher APR (400% of APE pool + BAYC compared to 40% of APE pool), just enjoy the majority of the reward that does not have to be divided back to the user.
3. Moreover, if a lot of $APE is locked together, BendDAO will have a great influence on voting in the Ape community. This is a big advantage because Ape is currently one of the strongest communities in the NFT space.
4. The intermediaries received swapping through $BEND will also stimulate the demand for $BEND. The project is still proposing that this fee can be used to burn tokens.
👉 To sum up, it can be seen that this proposal of BendDAO is very smart, solving the right problem of the market. Bringing many advantages to both the project and the user's profit, although there are still some minor weaknesses such as NFT being locked. $BEND also thanks to that increase 50% as expected. However, the price has adjusted, because this is currently a proposal and needs to be approved by the community, so let's follow Holdstation to find opportunities.