BendDAO, the decentralized NFT-powered lending liquidity protocol, has made good on its commitment to openness, publishing a detailed financial statement of its operations on the first-year anniversary of its launch.
The EDGAR-style report is similar to the detailed financial statements that publicly-traded companies provide to the U.S. Securities and Exchange Commission, ensuring full transparency around the DAO’s finances. It was produced by NFTBank’s Unboxing Labs, and is being made available to any community member that’s looking for insights into BendDAO’s financial health.
BendDAO is a lending liquidity protocol that allows users to borrow crypto instantly against the value of their NFTs, which must be deposited as collateral. Its lending capital is provided by its community members, who then earn APR on their deposits as borrowers repay their loans with interest. By taking NFTs as collateral, lenders have insurance in the event that the borrow fails to repay their loan.
The full report covers BendDAO’s profit and loss statements, balance sheets and associated risk measures, and shows that it made annual interest revenue of 3,097 ETH in its first year, with annual interest expenses of 2,168 ETH, resulting in an operating income of 929 ETH ($1.69 million at the time of writing) for the first year.
BendDAO currently holds 63,000 ETH in liquidity, and earns a 29.35% APR against a total borrowing rate of 21,342, while depositors in the protocol can earn 7.81% APR. According to BendDAO, that equates to a protocol utilization rate of 34%. The report also details a breakdown of BendDAO’s cash reserves, loans, the NFTs on its books, including those that are escrowed, transferred and deposited, and its equity.
BendDAO said the whole point of its statement is to be as transparent as possible for its community’s benefit. Potential users can therefore make better informed decisions on whether or not to use the protocol, instead of going on simple metrics such as total value locked and APR, which are often misleading, it said.
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