Cirrus Profile picture
Aug 22 15 tweets 4 min read
🚨 BendDAO founder has proposed emergency changes to the protocol 🚨

If the vote passes theres a high likelihood of 600+ liquidation auctions of BAYC, MAYC, Clone X, Azuki, and Doodles over the next month

A quick thread to dumb it down + how you can capitalize...
First off if you don't know WTF any of this means you'll want to run through this latest update on the BendDAO situation from my good friend and NFT numbers savant @punk9059

1. Liquidation threshold changes

By far the most crucial change here is the gradual drop in the liquidation threshold

The proposal suggests a 5% weekly decrease in the threshold from the current 90% starting next week until a 70% baseline is reached
2. So whats that mean?

For simplicities sake lets assume floors remain semi-constant until Sept 20th.

If we account for interest accrued from now until then, we can assume that everything with a ~1.39 health rating today will be gradually put up for auction by Sept 20th
As of writing there are around 600(!!!) combined BAYC MAYC Doodles Clone X and Azuki with a health rating of 1.39 or below

You can view them all here:…
3. DAMN thats a lot of auctions!

Yep. But theyre improving said auctions quite a bit

They will only last for 4 hours instead of 48

Plus Instead of having the minimum starting bid set to 95% of floor like before itll be set to the total debt on the NFT (Amazing for liquidators)
What this means is that the gap between the floor, and the starting bid price will be much wider than it was before - up to 20%

The prior setup didn't incentivize liquidators nearly enough at a 5% spread from starting price and floor

This led to a stockpile of inactive auctions
4. What does this mean for me?

The proposal passing means there will inevitably be some great deals over the next month

If you're like me and plan on taking part in these liquidations, you'll want to check in here pretty frequently for ongoing auctions:…
There's a separate page for NFTs that have reached the liquidation threshold but haven't had a bid on them yet.

If you want to be the bidder to set off an auction, you'll want to watch this page daily:…
5. Why are they doing this?

BendDAO needs to do whatever it can to limit the amount of bad debt it accrues

By lowering the liquidation threshold, they can be assured that under-collateralized NFTs will be auctioned off before the floor drops enough to enter bad debt territory
Its also not great that their lending wallet has gone from 18k ETH to 0 in a matter of days

They still owe ~13k ETH to lenders, these changes will speed up the process of adding liquidity back into the lending pool and reclaiming depositors sanities
6. So whats this mean for the overall market?

If the proposal passes itll mean tons of previously unlisted supply being brought onto the market for the top collections

Barring any surprise catalysts, itll be tough for any floors to make a substantial move up over the next month
If this information didn't get out, the chances of winning a bunch of auctions with lowball bids would be much much higher....but that would also lead to tons of cheap re-listed supply on secondaries

The more liquidators there are that take part in these auction the healthier
Don't plan on taking part in the auctions?

I'd still recommend keeping up with the bidding to get an idea for how strong demand is at that point in time

Do plan on taking part in the auctions?

Then happy liquidating! (and fuck you if you outbid me 🙃)
If you found this thread helpful, you'll probably enjoy my weekly newsletter that covers the latest and greatest in NFTs.

Thanks for reading!…

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More from @CirrusNFT

Aug 17
There are currently 32,267 ETH ($59,048,610) worth of NFTs being used as collateral for loans on BendDAO alone

For the first time ever, a lot of these are at serious peril of liquidation

A thread on the single biggest risk to the NFT market that nobody is talking about
1. WTF is BendDAO?

BendDAO is the first peer-to-pool based NFT liquidity protocol.

Depositors provide ETH liquidity to earn interest and in turn, NFT holders are able to instantly borrow ETH through the lending pool using NFTs as collateral
2. So how do the loans work?

Most NFTs are collateralized at 30-40% of floor value

So if I take a loan on an ape at 100E floor I can expect to receive a 30-40e loan at a 15-25% interest rate

Cool right?

Until it's not.
Read 11 tweets
May 9
Over the past nine months, I turned 0.6 eth into 350 eth+ trading the NFT market

I attribute most of my success to the mental and emotional strength that my two battles with cancer gave me.

That may sound weird at first, so heres a few points explaining why... 🧵👇
1. Never get too high, never get too low

You think watching floor prices go down for a few days is stressful?

Try staring death in the face for two years straight and not blinking. Its easy to stop yourself from panic selling for a loss once youve gone through that
This one goes both ways. If the floor moves up, I don't fall into the trap of hoping for more.

Take the small wins and enjoy them as they come because this is going to be a long battle.
Read 14 tweets
Feb 14
How I turned 0.6 eth into 150+ eth while sticking primarily to two projects.

No lucky mints, no whitelists, no bots, and no alpha groups. A thread diving into the strategy which worked for me that anyone can use to be profitable in the NFT space…
1. Pick a proven project

When I first started, I was blindly jumping from derivative to derivative, risking losing a majority of my bankroll on a single flip gone wrong. The entire game changed for me when I settled on a solid project with good volume... @LazyLionsNFT
Lions floor is sitting at about 2.5x what it was when I first found the project in August. Im mentioning this to show you that you don't need your project to go on a parabolic run to be profitable (although that doesn't hurt), you just need the project to have consistent volume.
Read 20 tweets

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