BendDAO · interactive mechanism simulation

Depositors fund a shared ETH pool. Borrowers lock blue-chip NFTs (wrapped as non-transferable boundNFTs) and draw ETH up to a floor-price LTV. If floor prices crash, health factors breach and liquidation auctions must clear — but a high minimum-bid rule can make bidding irrational, leaving bad debt and triggering a depositor bank run. Edit the parameters, or trigger the August 2022 scenario.
Depositors supply ETH liquidity LendPool — ETH reserve 0.0 ETH available Borrowers lock NFT, draw ETH Floor-price oracle floor: 80 ETH boundNFT vault 0 NFTs locked Liquidation auction min bid 95% of floor clearing normally Bidders / backstop 48h English auction BANK RUN — reserve draining, auctions failing
ETH reserve
0.0 ETH
Loans outstanding
0.0 ETH
NFTs locked (boundNFT)
0
Utilization
0%
Bad debt (failed auctions)
0.0 ETH
Parameters — edit me
35%
90%
95%
80 ETH
1.2/s
Controls

Illustrative simulation. Defaults mirror the researched BendDAO mechanism (peer-to-pool ETH lending against ~30–40% floor-price LTV, boundNFT collateral, 95%-of-floor auction minimum bid), but trade sizes, timing, and bidder behavior are randomized and simplified for visualization — not live onchain data. Drag the sliders to explore the mechanism, or trigger the bank-run scenario to see why the original liquidation design failed. Part of The Onchain Experiment Atlas.