1/ BarnBridge V2 launched yesterday.
The goal is to offer the best fixed-rate yield in #DeFi
But how does it actuallly work?๐งต
The goal is to offer the best fixed-rate yield in #DeFi
But how does it actuallly work?๐งต
2/ From a user's perspective, it's quite simple.
During a Subscription period anyone can deposit $DAI to the pool.
The trick is, the more DAI is deposited, the lower the fixed-yield is.
The subscription period lasts for 24 hours.
During a Subscription period anyone can deposit $DAI to the pool.
The trick is, the more DAI is deposited, the lower the fixed-yield is.
The subscription period lasts for 24 hours.
3/ Then comes the Withdrawal period.
If you think the Fixed APR dropped too much, you can remove your deposit during the 24 withdrawal window.
As depositors leave, Fixed APR increases.
If you think the Fixed APR dropped too much, you can remove your deposit during the 24 withdrawal window.
As depositors leave, Fixed APR increases.
4/ Finally the Epoch running period starts for a fixed period of time for a fixed interest rate.
No deposits or withdrawals are allowed.
No deposits or withdrawals are allowed.
5/ If you suddenly need your deposited money, there is a way.
When you make a deposit, you receive ERC-20 pool tokens that represent your share of the active pool.
They are transferable, but you need to find a counterparty willing to buy Proof of Liquidity tokens from you.
When you make a deposit, you receive ERC-20 pool tokens that represent your share of the active pool.
They are transferable, but you need to find a counterparty willing to buy Proof of Liquidity tokens from you.
6/ So, where does the yield come from?
The yield from the running Epoch had been already generated from the prior epoch on Aave!
So if you deposit $DAI into the current Epoch, you are funding the yield for the next Epoch.
For the 1st Epoch BarnBridge team seeded the yield.
The yield from the running Epoch had been already generated from the prior epoch on Aave!
So if you deposit $DAI into the current Epoch, you are funding the yield for the next Epoch.
For the 1st Epoch BarnBridge team seeded the yield.
7/ What's more, BarnBridge v2 allows boosting your open positions for 4x leverage.
BarnBridge uses looping by borrowing $DAI from Aave with $DAI deposited during the Subscription period.
Current BB does it on user's behalf as BBV2 $DAI isn't accepted as collateral on Aave.
BarnBridge uses looping by borrowing $DAI from Aave with $DAI deposited during the Subscription period.
Current BB does it on user's behalf as BBV2 $DAI isn't accepted as collateral on Aave.
8/ BarnBridge V2 is currently live on #Ethereum
But soon it will launch on @optimismFND for lower gas fees.
It makes sense, as depositing and withdrawing from Epoch costs gas, which would cut down on that precious yield.
But soon it will launch on @optimismFND for lower gas fees.
It makes sense, as depositing and withdrawing from Epoch costs gas, which would cut down on that precious yield.
9/ At the time of writing, BarnBridge entices depositors with 22% APR on $DAI.
But I expect the APR will change just before the Subscription period ends in 11 hours.
Let the Hunger Games for high yield begin!
But I expect the APR will change just before the Subscription period ends in 11 hours.
Let the Hunger Games for high yield begin!
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