Will BendDAO embrace the BTC ecosystem? Can the old tree blossom?

Rather than actively seeking change, it is better to say that it is being coerced by the general trend of the market.

Written by: 0xAyA, Odaily Planet Daily

Finally, BendDAO also started to issue inscriptions-this protocol that had previously focused on the NFTFi field and was committed to providing more liquidity to blue chips could not escape the rolling wave of BTC ecology and inscriptions. As early as two weeks ago, BendDAO stated that the team plans to propose solutions to embrace the Bitcoin NFT ecosystem. The new solution will allow seamless interaction between Bitcoin NFT and BendDAO, and support the WBTC liquidity pool as a loanable assets.

Then BendDAO announced that it would connect BRC 20 and ERC 20 liquidity, and would soon launch BendDAO BRC-20 to provide lending and cross-chain bridge services for the Bitcoin ecosystem. Just yesterday, the official officially announced that it will launch the BRC-20 token BDIN, which will provide priority rights to borrowers, lenders, pledgers and veBEND holders.

BRC 20 is a format standard for issuing fungible tokens on the Bitcoin network. It configures token contracts, mints and transfers tokens by using the Ordinal protocol to set inscriptions into JSON data format. We can understand it as A mutated ordinal NFT. The inscriptions burned on the NFT are pictures. The inscriptions identified on the BRC 20 are text data (text) in a unified JSON format. In BRC 20, the inscription is also the accounting ledger of BRC 20 tokens, which can be used to track every token change. ERC 20 is a token based on EVM that relies on smart contracts. Since BTC lacks smart contract support, the tokens issued on BRC 20 have fewer functions.

Although both are token standards, ERC 20 and BRC 20 essentially have little in common. BendDAO provides cross-chain bridge services, which will undoubtedly greatly reduce the gap between the two, and this cross-chain support can also improve the liquidity between the two most important ecosystems, whether it is improving asset utilization, It is also potentially important to the overall development of the Bitcoin ecosystem in the future.

This is not the first time BendDAO has made such a layout to enhance liquidity - as early as when the Ethereum NFT narrative was in the ascendant, BendDAO had set its sights on the most important piece of cake in the entire ecosystem, that is, the blue-chip NFT market. Through the “peer-to-peer pool” design and two-way mining incentives, BendDAO quickly attracted blue-chip NFT Holders who are extremely sensitive to capital efficiency. So far, BAYC has been put into the pledge pool one after another.

However, the design of BendDAO itself and the continuous thunderstorm events in the market have caused liquidation events to occur one after another. Although the project team quickly adjusted the liquidation mechanism after the liquidation event in August and gradually lowered the liquidation threshold from 90% to 70%, The auction cycle is adjusted from 48 hours to 4 hours, and the restriction that “the first bid must be 95% higher than the floor price” is removed. But it is still impossible to avoid the occurrence of liquidity crisis.

As the market’s enthusiasm for NFTs gradually subsided, blue-chip NFTs also fell into a downward spiral this year. The floor prices of leading projects were more than half of their peaks, and the originally popular NFTFi narrative became less clear. Few people care.

BendDAO’s attempt this time is not so much a proactive change, but a helpless move driven by the general trend of the market - under the craze of Inscription and Launchpad, projects such as HOOK and LEVER have transformed one after another, and BendDAO also chose This way, will their attempt succeed? Time will tell.