B.Protocol - The Backstop Liquidity Protocol is LIVE


Dear Alpha Defi Prime community,

We wanted to let the community know that B.Protocol is LIVE!

You can start using the app here - https://bprotocol.org/app

If you already have a MakerDAO Vault or want to open one, you can now get rewarded for managing it via B.Protocol interface.
You can read the full announcement here - https://medium.com/b-protocol/b-protocol-is-live-8d0971b77ef9


B.Protocol in numbers:

  • Launched 3 weeks ago
  • Over 10.9k ETH locked (~$5m)
  • Over 2m Dai borrowed
  • ~100 MakerDAO Vaults Imported/ managed by B.Protocol

What users get on B.Protocol:

  • Accumulate B.Protocol’s rating score.
  • Get a share of the backstop liquidation proceeds according to your score.
  • If you start using B.Protocol early you get a higher score.
  • During the first month, the score accumulation rate is calculated with an x2 factor.
  • The contract is already seeded with $10k in ETH so users will share this amount even if no liquidations will take place during this time period.
  • When using B.Protocol you are also taking part in securing the lending platform you are using from Black Thursday like events.

Governance:

After a 6 months period, 100% of voting power will go to B.Protocol users. There is no pre-mining or VC allocation of any kind. Users could vote on a protocol upgrade to determine the future proceeds distribution scheme. Governance does not, and will not have control over user deposits. Voting will be made according to users’ rating score.

What is B.Protocol:

B.Protocol is a backstop liquidity protocol for decentralized lending platforms. A new DeFi lego primitive bringing traditional finance systems best practices into DeFi, aiming to stabilize the ~$12b market of DeFi assets that are crucially dependent on adequate liquidation processes - which were not available for the DeFi ecosystem till now.

Our first integration is over MakerDAO. Users can Import their ETH-Dai Vaults with one click, or open a new Vault using B.Protocol, to gain a share of liquidation proceeds. B.Protocol Liquidators share proceeds with users in return for a priority on the liquidation process.

Who benefits from B.Protocol:

  • MakerDAO, as a platform, becomes more stable due to more committed liquidators (soon also on Compound and Aave).
  • Liquidators avoid gas wars and shift MEV (Miners Extracted Value) to users.
  • Users get more from their Vaults while helping to secure the platform.

Security:
B.Protocol is a non-custodial solution and funds are and always will be under the user control.

The smart contracts code was audited by Solidified (https://twitter.com/SolidifiedHQ) with no issues found -https://github.com/solidified-platform/audits/blob/master/Audit%20Report%20-%20Backstop%20Protocol%20[02.10.2020].pdf.

Wil Barnes and Lucas Manuel, from the MakerDAO smart contract team, have also reviewed it (privately) and got similar results - https://hackmd.io/@wvj58ecDT7uiW4OFhwy4DQ/B1c9PerHv


Who is behind B.Protocol?
B.Protocol was founded by Yaron Velner, who was previously Kyber Network’s CTO and a co-designer of the WBTC protocol.

For a deeper dive, you can read B.Protocol’s whitepaper here - https://medium.com/b-protocol/b-protocol-b6dd4e3bf9c0

If you need any support as to how to start with B.Protocol or just want to join the on-going discussion please head over to our Discord - https://discord.gg/bJ4guuw
or follow us on Twitter - https://twitter.com/bprotocoleth