Tokenized Risk Protocol: A fluctuation derivatives protocol for hedging yield sensitivity and market price.
BarnBridge recently raised $1m in seed funds from leading investors and defi protocols:
The round is comprised of industry leaders including Fourth Revolution Capital, ParaFi, Kain Warwick (Synthetix), Stani Kulechov (Aave), Andrew Keys (DARMA Capital), Centrality, Blockchain Companies, Dahret Group, BarnBridge founders, & advisors.
It was also recently announced that Coinbase is looking into listing BarnBridge for custody:
BarnBridge is the first tokenized risk protocol. Before the advent of smart contract technology it was close to impossible to track & attribute yield to a divided allotment of capital, trustlessly & transparently, to provide hedges against any and all fluctuations. Conceptually, you can build derivative products from any type of market driven fluctuation to hedge various risks. Examples include, but are not limited to, interest rate sensitivity, fluctuations in underlying market price, fluctuations in predictive market odds, fluctuations in default rates across mortgages, fluctuations in commodity prices, and a seemingly infinite number of market based fluctuations to hedge a particular position.
NO INVESTMENT ADVICE. The content is for informational purposes only.
In order to facilitate a fair and inclusive distribution of $BOND tokens to future protocol participants, BarnBridge is proud to announce its upcoming two-phased liquidity mining program. We will be releasing two sequential staking contracts with distinct specifications around $BOND token distribution:
- Yield Farming
- Liquidity Pool Incentivization
Below we will explain the parameters of each contract, the differences between the two, and the rationale behind their respective mechanism designs.
The first mechanism delivering initial $BOND token distribution to the community will be the Yield Farming staking contract. This contract will hold 8% of the total supply and will be distributed to community members who stake DAI, USDC, & sUSD. We chose these three stable coins (DAI, USDC, sUSD) because they will serve as the initial set of yield-producing assets utilized in our first product, the SMART Yield BOND. We thought it was only fair to tailor this first opportunity to earn $BOND token for the types of users who will graduate from their humble farmer beginnings to become active protocol participants; and to do that you must first hold the assets required for SMART Yield!
After all, we know Yield Farming is all the rage these days… but above all else its true purpose is to build the foundations of an engaged community whose incentives are aligned with those of the protocol, even once the crops run dry (and well beyond).
Participants can harvest their yield at the conclusion of each epoch. Each epoch will last 1 week, and an equal number of $BOND tokens will be distributed during each epoch. The participants’ harvest will be based on the amount of stable coins they have staked relative to the total amount staked in the pool. The calculation will be time-weighted to promote true and fair pro rata harvesting. Any participant can add to the pool during the duration of an epoch and receive rewards proportional to the time they are staked, but the funds must stay staked through the end of the epoch to be able to harvest the rewards. That’s Week 1 — the first epoch — plain and simple.
We would like to emphasize that a contract like this has never been written before; one that allows users to stake different stable tokens in a single contract. We are proud to give this to the open source/WEB3 community for use in future projects if any find it fitting and hope it reflects our dedication to the space.
Liquidity Pool Incentivization
After the first epoch (1 week) of the Yield Farming program, we will offer the ability to harvest your spoils and migrate to new fertile soil in part 2: Liquidity Pool Incentivization. The concept behind the Liquidity Pool Incentivization initiative is to reward long-term liquidity providers with progressively more power over the protocol as they continue to signal their belief in the BarnBridge vision. Participants who believe in the vision represent the community, we hope, will gain significant control over the protocol’s long-term evolution, and are therefore the users who should be rewarded with the most plentiful harvest.
We will again be using the uniswapv2 BOND/USDC Liquidity Pool token (USDC_BOND_UNI_LP) as a means to reward liquidity pool providers a massive incentive to bootstrap protocol liquidity. The Liquidity Pool Incentivization initiative will run for 100 weeks and each epoch will last 1 week. At the end of the epoch the user can harvest their $BOND. This initiative will be granted 2,000,000 $BOND tokens and each epoch will have 20,000 $BOND tokens to start.
Any questions around a vesting schedule, please check out our “Fair Vesting” program, and for more information please also see our articles about our seed round announcement and our DAO first governance model.
We have conducted a couple of internal audits on the smart contracts with the help of our technical advisors Atpar. We also had an outside audit conducted by Hacken. You can find the audit report HERE.
Yield Farming and LP Incentivization Launch Time Line
Easily learn how to Yield Farm with this video tutorial: