BProtocol - Crypto Education in DeFi liquidations
B.Protocol is the DeFi backstop liquidity protocol!
B.Protocol is the solution for the ever-growing DeFi market, a method to stabilize the DeFi assets volatility and a way forward for DeFi farmers. The idea behind B.Protocol was to make lending platforms more efficient and to simplify the entry level for new users. The V1 uses Maker DAO and Compound to supply liquidity and the LPs will earn without hustle.
The B.Protocol V2 is deployed over the Liquity Protocol, and users are incentivized to deposit assets and will receive attractive yield. The innovative on-chain algorithm will rebalance the liquidation proceeds back to the originally deposited currency, maximizing the earnings. Maker DAO and Compound users can use the protocol as a decentralized and transparent keepers ecosystem while supporting low liquidity assets.
The advantages of B.Protocol are given by the Liquity's stability pool and the automatic rebalancing via the AMM. Users will get assistance to avoid liquidation and how to use higher leverage. The B.Protocol will offer support on how to use the decentralized and transparent ecosystem and will educate users about low liquidity assets.
The $BPRO token powers the B.Protocol governance. The token total supply after launch is 1,000,000 BPRO, reaching 10,000,000 after a 4 years emission schedule. The DAO will have full authority over the approval of new distributions once the 4 years distribution ends.
B.Protocol benefits for users include Democracy, Capital Efficiency and Stability. The profit is shifted from the bots and miners to everyone involved in the B.Protocol ecosystem. Efficiency and stability is achieved by unlocking higher borrowing power and by providing a stronger safety net to DeFi lending.
The B.Protocol v2 integration with Liquidity was covered in the Liquidity Recap. The mechanism will automatic convert Ethereum from liquidations into LUSD and redeposit the assets into the liquidity pool.
Exploring B.Protocol
I entered the B.Protocol app and the layout was straight-forward and easy to use, with the three earning tabs available for users. The MAKER tab allows users to deposit and lock Ethereum and Bitcoin, and borrow DAI with 2.50% Stability fee.
The Compound algorithmic and autonomous interest rate will allow the users to supply and borrow cryptocurrencies. The supplying balance will raise the borrow limit and will generate claimable Compound.
Depositing LUSD in the Stability Pool will generate $LUSD and $LQTY at high APR. The B.Protocol fair earnings will continue their perpetual process, as LQTY holders can stake to earn a share of borrowing and redemption fees
The B.Protocol ecosystem will soon integrate AAVE, enhancing the overall earning system. I found a protocol that can be trusted, and the tools for fair finance.
Risk awareness is something that often is missing from DeFi platforms. B.Protocol leads by example by having a dedicated space about the risks of interacting with lending platforms. The assets liquidation risk is not reduced and B.Protocol does not stop liquidations, as the protocol is only preventing a loss that will be bigger than the underlying platform liquidation penalty. Always do your own research before investing!
Meet the team
Yaron Velner is the Protocol Architect and B.Protocol CEO, Eitan Katchka is the Head of Ecosystem Development and Shmuel Disraeli is the Full Stack Engineer.
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Very educational. Moving away from bots and automation and bringing power to the ppl is democracy as it should be. A lot to learn, a lot to do.