BendDAO, an NFT lending platform, has filed a proposal on the group discussion board to create an funding fund with a post-money valuation of $80 million.
In line with the proposal, the fund, if accepted, will operate as a sub-treasury for the NFT lender. The sub-treasury will make investments not less than 50% of its funds in non-performing property. This transfer is a part of efforts to diversify the NFT lender’s DAO treasury.
For BendDAO, this sub-treasury is important given the current struggles the challenge has confronted amid a common downturn within the NFT market. Shrinking liquidity within the NFT area has seen a big quantity of compelled withdrawals from the NFT lender, resulting in a pointy enhance in borrowing charges. This case lately noticed the platform amass a major quantity of unhealthy debt as debtors defaulted on their mortgage positions. As beforehand reported by The Block, BendDAO was compelled to push by various protocol upgrades to forestall a number of Bored Apes and different costly NFTs from being bought at a reduction.
To seed the sub-treasury, the BendDAO group is in search of approval from the group to promote 1 billion of its tokens. This quantities to 10% of the whole BendDAO (BEND) token provide. The NFT lender plans to make use of ether (ETH) because the financing forex with a minimal funding of 100 ETH per share to realize the $80 million post-money valuation for the fund.
The proposal states that the NFT lender is trying to appeal to investments from enterprise capital corporations, blue-chip NFT initiatives, and group members. Of the 1 billion tokens, 60% will likely be allotted to enterprise capital buyers. The remaining allocation will likely be cut up equally between buyers from the DAO and blue-chip NFT initiatives. Every VC, NFT, or particular person investor will solely be allowed to personal a most of two% of the tokens being bought by the fund.
As a part of the proposal, BendDAO is contemplating two choices for distributing the tokens to buyers. The primary possibility has no vesting requirement however the DAO will deposit an equal quantity of the ether generated from the token sale into its ETH liquidity pool to earn staking rewards. The second possibility has a six-month vesting schedule, adopted by linear unlocks over a two-and-a-half-year interval.
BendDAO plans to make use of not less than 50% of the fund to put money into non-performing property. The DAO will create a four-of-seven (4/7) multi-signature pockets for the sub-treasury. This multi-sig association will embrace three group members, two VC representatives, one signatory from a blue-chip challenge, and one BendDAO core group member.