Barnbridge, Defi's "risk-free" product is a new blue chip?

Barnbridge: Will "Risk Free" Products Be the Next Blue Chip?

Original source: Kriss, ContinueGroup

Defi's narrative and direction

When the value of our DeFi thinking products, we will all complex products are simplified to lending and trading on the two categories, from the most simple several indicators to experience the product itself, such as interest rates, yields, depth, when the most essential form back to the business, we can first consider why money into some potential DeFi products, why we track every day in TVL precipitation (money) is such an important indicator of good product nor, of course, lack of creativity team, good tokens model distributed innovation (Farm) and compelling narrative ability, etc.

When history comes down to the details, we'll marvel at how Defi was able to stumble and grow exponentially into the giant it is today, driven by a macro narrative, and how it was all piled on top of and triggered by a series of innovations, without the MetaMask plugin for Chrome. What if Sythetic hadn't pioneered token mining, and then the token economy gracefully supported the value of the product, until YFI caused a Fairlaunch boom? What if it weren't for the amazing innovations of AMM and Lightning Loan?

We are looking for DeFi on product innovation, also in thinking about the value of narrative and inner is how to promote industry return to some inevitable path, which the main line, to guide our investment when the etheric fang from "imagine the world of computer" revolution to return to "business driven DeFi" valuation reconstruction, we have to think about block chain the financial evolution of the main line is how to happen, and how will continue to develop.

Imagination and narrative ability are the driving force for the development of human civilization. This kind of imagination is "the creation of credit" in the economic field, and finance is essentially the risk pricing of the credit created. Credit can be:

Imagination of the purchasing power of a currency can be derived from sovereign credit or from consensus mechanisms;

Imagination of asset value can be derived from discounted future cash flows, or narrative value, with expected difference.

The assumption that a debt can be paid back can be derived from future cash flows or collateral, etc., with a spread;

However, we may now be experiencing the third underlying logic transformation in the field of Crypto. When BTC brings the endogenous value of digital assets, and Ethereum brings the infrastructure that can carry business and value, the expected spread trading business and the spread lending business of traditional finance originally carried by the centralized exchange are impacted by DEFI.

While the maturity of DEFI has made it possible to approach the zero point of breaking the dimensional wall, a large number of traditional funds have gradually established trust in the process of watching DEFI develop, but the funds have not yet had a "risk-free" mature entry point. On the one hand, fixed income and risk exchange are the source demand equivalent to lending, trading and assets, which is also a huge market in traditional finance. On the other hand, risk grading products, etc., are also the possible main direction of DEFI product innovation.

And this is Barnbridge's vision:

To make it easier and safer for traditional financial investors to access DEFI's products and services;

Structured risk provides high returns to those who can bear high risks and stable returns to the majority of investors.

Addressing the "risk of agreement homogenization" pain point of unstable interest rates in the DEFI area;

What is a BarnBridge

Barnbridge is a tiered derivatives agreement that uses fixed rates of return and volatility to mark product risk. The products are:

Smart Yield Bond, fixed and floating rate products guaranteed by DEFI Yield;

Derivatives that hedge against price fluctuations in any ERC20 token market

Its development course is as follows:

On September 11, 2020, USD 1 million seed round financing will be completed;

On October 14, 2020, liquidity mining will be started with a 12-hour TVL of $120 million; Nearly half a billion dollars in two weeks;

November 16, 2021, start Bond Pledge mining;

February 5, 2021, Barnbridge DAO launches;

Barnbridge launched Smart Yield on March 15

BarnBridge products

Smart Yield Bond

It can be simply understood that the coins in the Pool get revenue from various protocols and are classified into two revenue derivatives

Senior Tranche (Sbonds) Priority tokens: Fixed payoff

Junior Tranche (JTokens) : Interest rate fluctuations are higher

Ex. :

Pool with 1000DAI, including Senior 700DAI and Junior 300DAI

1) Senior revenue:

Locked in a fixed rate of 5%

2) Junior Revenue:

If Pool gains 10%, Junior gains (1000)

10% - 700.

If Pool yields 3%, Junior yields (1000)

3% - 700.

Barnbridge just launched Smart Yield on March 15, starting with the Combond Pool:

Smart Alpha Bond

Various ERC20 tokens can be placed in the Pool to re-grade risk exposure:

For example, in the ETH Pool

1) ETH (A Junior Tranche of ETH Price Exposure) Assumes large risk exposure 70% :

If ETH goes up 10%, Jeth enjoys a 17% increase

2) SETH (A senior tranche of ETH price exposure) takes A small risk exposure of 30%

If ETH falls by 10%, Seth will have to take a smaller 3% drop

Barnbridge's token structure

Barnbridge uses 1/3 of the tokens for mining and 1/3 of the tokens for future communities:

Mining at Barnbridge will last 100 weeks:

In the early stage of chip allocation, Barnbridge has more than 500 million locked positions, indicating the high expectations of the market for Barnbridge:

Barnbridge's team background

Supported by mainstream investment institutions:

The team has been working in the industry for many years:

The technical team is from Digital M.O.B., a blockchain technology company with Concensys background.

The operations team has Proof Systblockquotes for marketing services for Concensys.

One of them is from the Proof Systblockquotes team based in North Carolina, Florida, and Ukraine, including co-founder Tyler (primarily) and COO Mark

The team from blockchain technology company Digital M.O.B and Concensys is based in Romania, including co-founder Bogdan, and Tech Lead Stefan

The team from Rude Labs, Base, in Arizona, USA, has co-founder Troy

"Riskless" product comparison

Type of contrast

Yield, Notional

Interest rate markets: Horizon, Swivel

Risk rating: Barnbridge, Saffron

In the early stage, we followed the ease-of-use priority principle of products. For example, zero-coupon bond products and interest rate market products had higher threshold and more complex rules, while risk-graded products only needed to choose products with different returns according to their risk tolerance.

The data analysis

Barnbridge just went online on March 15th, and there was only Combond pool, so the data was not enough for analysis. We borrowed some data from Saffron, a similar product, for analysis.

Saffron lockup capacity:

1) Tranche accounted for 36.4%, indicating that there was spontaneous demand for core products

2) In Tranche, S:A=7, most of which are still low-risk demands, indicating that "risk-free" demands have great potential

Barnbridge has the potential to become the new blue chip

First mover advantage in the direction of graded derivatives, forming network effect; Excellent team innovation and execution;

The team has good relationships and connections with many of the Defi head projects, funded by AVE founder Stani and Synthetix founder Kain, and constantly featured on Twitter by both.

It is possible to go out of the loop and make the capital pool bigger (TVL500 million for two weeks); Giving full play to the combinable line of DEFI, it is expected to become a "hedge blue chip" alongside the blue chips such as AVE and UNISWAP.

The original link

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia