- Bored Ape NFT liquidation cascade is inevitable according to Web3 Launchpad founder “DoubleQ”
- Many deposits into BendDAO in exchange for $ETH of BAYC holders are at risk of being liquidated.
- OpenSea NFT volumes are currently at their lowest point in the past 12 months.
Bored Ape NFT holders are not bored at all right now as there could be a string of liquidations on the NFT liquidity pool BendDAO.
Depositing NFTs Based on data collected from BendDAO, BendDAO trades $ETH with a health factor of 1.01 and is now at risk of being liquidated.
“DoubleQ”, founder of the Web3 launchpad DoubleStudio, claimed on Twitter that the BAYC loan liquidation has the potential to destroy the entire NFT market.
1/ How @BendDAO and BAYC Loan Liquidation Can Destroy the Entire NFT Market
30,300 ETH ($55M) worth of NFTs go live
Must-read post for protecting yourself 🧵
— doubleQ (@xDoubleQ) August 2022 January 19 
BendDao is an NFT lending protocol that provides 30%-40% of the NFT floor price as a loan. This is typically used by market participants who need ETH liquidity but do not want to sell their blue chip NFTs. However, in the event of a health factor below 1, the NFT will be liquidated, as shown in the example below.
There are currently 20 BAYC, below 1.1 health factor and more and 1.2, which may liquidate about 55 million worth USD NFTs.
Opensea NFT trading volume is currently in the last 12 The lowest point in months, which means there will not be enough trading volume to save these NFTs from liquidation. Borrowers will have 48 hours to repay the loan or their collateral will be liquidated.
DoubleQ, thought the following might be a great opportunity to buy NFTs at a cheaper price:
– Bidding on loans and flipping them afterwards
– Waiting for mass liquidation with the most Good entry point for these NFTs.
