BendDAO has announced an integration with the Bitcoin ecosystem for NFT borrowing and lending

The decentralized non-volatile tokens (NFTs) borrowing and lending protocol – BendDAO – is all set to embrace the Bitcoin ecosystem. In a Discord post, BendDAO said it will offer Bitcoin NFT lending trading and support a liquid pool of wBTC as a loanable asset.

The platform is actively exploring ways to facilitate smooth interaction between BTC NFTs and the platform, considering options such as third-party cross-bridge and on-chain bridging using multi-signature wallets.

BendDAO to accept the Bitcoin ecosystem

Hill's official announcement, listed as a major contributor in the BendDAO Discord,

“It's time to embrace the BTC ecosystem by providing solutions that support seamless interoperability between BTC NFTs and BendDAO and wBTC liquidity pools as lendable assets.”

Third-Party Bridge Protocol The protocol involves the use of an existing third-party bridge protocol to connect Bitcoin NFTs from the Bitcoin network to BendDAO on the Ethereum network. In this solution, users provide Bitcoin NFTs to a third-party bridge, which is an ERC721 token mapped 1:1 to the user. Users deposit these ERC721 tokens into BendDAO to borrow ETH, USDT or wBTC.

Such a system will have a proven infrastructure with proven security protocols and rapid integration for immediate deployment.

The Multi-Signature Wallet Bridge is another solution that BendDAO is still investigating, which uses a multi-signature wallet system as an intermediary between the Bitcoin and Ethereum networks. In this case, BendDAO takes more control over the bridge process. Another benefit is improved security with multi-signature authentication.

Fear of a bank run

Last year, BendDAO lent an estimated sum of 15,000 ETH to a number of projects that were embroiled in a financial crisis.

In response to this challenge, the team behind the project aims to restore trust among ETH depositors. This proposal includes short-term adjustments to various parameters, such as flow limits and bidding periods, internet base rates, and user interface improvements.

Despite the setback, BendDAO announced its strategic plan last month. The roadmap lists the completion of a comprehensive update of the V2 product prototype in Q4 2023, the launch of a beta version to gather user feedback in Q1 2024, and the launch of the official V2 version in Q2 2024. Improved user experience.

Additionally, by Q3 2024, BendDAO aims to update V2 tokenomics and implement on-chain governance to increase community participation in decision-making processes.