BarnBridge (BOND)
Basics
- Based in: USA
- Founded in: 2019 Q2
- Mainnet release: 14-10-2020
- From EthHub #130 (7-9-2020):
"BarnBridge is a cross platform protocol for tokenizing risk."
- From their docs (3-2021):
"BarnBridge is a risk tokenizing protocol. It allows hedging yield sensitivity and price volatility by accessing debt pools on other DeFi protocols, and transforming single pools into multiple assets with varying risk/return characteristics."
History
- From their docs (3-2021):
"BarnBridge idea and whitepaper were originally conceived in Q2 2019, but started getting built a year later, in May 2020, and was officially introduced in September 2020."
Audits & Exploits
- Bug bounty program can be found [insert here].
- From Morioh (12-2021):
"Additionally, to the internal audits, we will do external audits with top companies in this space."
- Messari lists three audits (17-3-2021).
- Scored a 91% on DeFi Safety (17-5-2021); "Barnbridge enters the coveted 90%+ group with an increase to 91%. They added a testnet and nudged their score by 2%. We love improvement and will always improve scores once implemented."
- First it scored a 89% (9-4-2021); "Hacken did a review on September 29th, 2020. There is a Quantstamp audit also. BarnBridge was first released on November 17th, 2020." With the comment: "Solid across the board. Good to see specs in the GitHub, and a test report. This gets us smiling"
Bugs/Exploits
Governance
DAO
"The voting on the DAO will be performed with the non-tradable vBOND tokens. To get vBOND, users will have to stake or lock their BOND tokens.
Thresholds:
- To create a proposal you will need to have 1% of the BOND staked in Barn.
- The minimum quorum is 40% of staked BOND.
- The minimum acceptance vote is 60%.
You may have noticed we didn’t build a guardian into our DAO system like others out there. This falls back on our belief that most of the governance will happen off chain. We did include a “Cancellation” vote mechanism which should suffice for protection in the event a bug is found during the queued period.
Any future products can be launched with a Guardian function on the specific contract (given to a multisig or DAO for a specific amount of time or perpetuity) but we didn’t make it a prerequisite of any sort, but believe that the community should come to a status quo on how they want products to be launched."
- From their blog (4-2-2021):
"The DAO is going to launch on Feb 4th during our Project Call №10."
- From their docs (2-2021):
"BarnBridge DAO is an initiative, which grants voting rights to the $BOND holders and lay the foundation for the SMART Yield and SMART Alpha products. The BarnBridge DAO is the only source of minting products on top of the Blockchain and launch them into the wild.
BarnBridge DAO empowers the community by enabling decentralized decision making on the BarnBridge protocol. It is governed by the $BOND tokens and is the core component of the BarnBridge platform."
BarnBridge Council
- The BarnBridge core team has proposed (23-3-2021) the creation of a formalised on-chain body, the First BarnBridge Council. This council will be composed of three members nominated by the team - their backgrounds are available here. The role of this council would be to represent the community, both in the implementation phase of successful governance proposals and in the coordination of network resources.
Treasury
"10% of the total supply will finally go to the DAO treasury. The funds from the seeders and the initial supply of the $BOND token will be kept in the Launch DAO treasury until the official BarnBridge DAO launch. It is secured by a 15 token holders DAO vote."
Token
Launch
Token allocation
- "60% Community
- 12.5% Core Team
- 10% DAO Treasury
- 8% Yield farming
- 7.5% investors
- 2% advisors"
Utility
- From the announcement (3-9-2020):
"It will be used to stake in the system, and as a governance token when the governance module is launched|
Token Details
Stablecoin
Coin Distribution
- Has 5052 addresses holding BOND, according to Etherscan (17-3-2021).
- The three largest addresses are all contracts, with Governance holding 36.15% and the Community Vault 23.15% respectively.
Tech
- Whitepaper can be found here (Q2 2019).
- Code can be viewed here.
Implementations
How it works
"BarnBridge introduces more complex investment vehicles into DeFi to allow investors to hedge risks and make this market more efficient. BarnBridge is focusing first on yield sensitivity and market price volatility, which are two key risks today for DeFi users.
Yield sensitivity: to hedge movements in yields, BarnBridge proposes the introduction of tranched, fixed-yield derivatives. Tranches are how certain debt securities are split up to give investors access to diff levels of risk and returns. Think Wolf of Wall Street Jenga.
Enter BarnBridge's "SMART Bonds." Say you're a risk-off investor that wants some of those sweet DeFi yields, you buy the senior tranche. Say you have a higher risk tolerance, you buy the junior tranche. Your yields are higher but you're vulnerable to most of the default risk. Junior tranche token holders will have more exposure to an asset's price action. If Ethereum jumps 10%, the junior tranche would get most of the upside. If Ethereum drops 10%, the junior tranche would take most of the downside."
- From The Defiant (21-10-2020):
"Tokens will represent collateral that has been placed in different lending protocol and bundled up to offer bond-like characteristics, like fixed-rate yields.
Bond farming is broken down into 25 different epochs, with rewards funnelled to the LPs of different pools. Pools are used to kickstart the bond marketplace, set to launch in roughly two months.
Despite there being no active bonds to trade today, DeFi founders and investors are rallying around the concept of risk management, an indicator that the project is receiving a sign off from those at the top of the booming sector."
Fees
Upgrades
Staking
Liquidity Mining
- Had a yield farming period at the start to attract liquidity, which it did in hundreds of millions. After the liquidity mining was done, a TVL of about $79M left (28-4-2021).
- From The Defiant (21-4-2021):
"BarnBridge has made waves launching their first tranche lending product just over a month ago and since then have attracted a little over $52M TVL, aside from the hundreds of millions deposited prior to this as part of a liquidity mining program for their governance token BOND.
To jumpstart liquidity and incentivize junior tranche lenders given this risk of having to use funds to pay senior fixed rates, there is a SMART Yield pool, where a junior can stake their holdings and earn BOND through a familiar yield farming program. Above under Junior APY, the smaller number in the BarnBridge UI indicates that Juniors are earning 45.57% APY in BOND in the Smart Yield Pools."
Scaling
Interoperability
Other Details
Oracle Method
Privacy Method
Compliance
Their Projects
SMART Alpha
- From Yield Farmer (25-8-2021):
"BarnBridge releases a guide to its upcoming SMART Alpha system, a two-sided DeFi marketplace for asset price risk."
SMART Yield system
- From Yield Farmer (18-3-2021):
"The SMART Yield system is BarnBridge’s latest product. It mitigates the risks of DeFi interest rate volatility via debt-based derivatives. Specifically, SMART Yield works by tranching yields from DeFi debt pools, e.g. Compound’s or Yearn’s. These tranches are split into junior tranches, i.e. riskier ERC-20 tokens known as jTokens, and senior tranches, i.e. less-riskier ERC-721 NFTs known as sBONDs.
How it all works is that junior token holders provide liquidity along with the value that senior bondholders lock within their sBONDs. The liquidity is invested around DeFi accordingly. Both parties profit when the ecosystem’s APYs are high enough, but if they ever sink low enough, senior bondholders are guaranteed returns at the expense of juniors."
Roadmap
- Old one can be found here (21-10-2020):
"According to the project roadmap, the full protocol is not likely to ship for at least another month, but the MVP version of ‘Smart Yield’ is live today thanks to the stablecoin pool."
- Jan 2021 DAO launches
- Feb 2021 Smart Yield finalize & audit
- Q2 2021 Smart Alpha
- q3/4 2021 Bond Desk and Secondary Markets products
Usage
- From The Defiant (21-10-2020):
"Traders eager to start earning Bond tokens and using the protocol had poured just over $200M in stablecoins just 7 days after the project launched."
- From The Defiant (21-4-2021):
"BarnBridge has made waves launching their first tranche lending product just over a month ago and since then have attracted a little over $52M TVL, aside from the hundreds of millions deposited prior to this as part of a liquidity mining program for their governance token BOND."
Projects that use or built on it
Competition
Pros and Cons
Pros
- Solid use case
- Audits & good score on DeFi Safety
- DeFi native investors
Cons
- Slow on executing
- Bare minimum of tokenomics
Team, Funding, Partners
Team
- Full team can be found here;
- "Troy Murray - Troy runs RUDE_labs, a crypto centric artist company. Troy has been exploring the many benefits that Blockchain can bring to media and artists since 2012 when he got bit by the Bitcoin bug and has been falling down the rabbit hole ever since. Troy has worked in an around the Crypto space, devoting most of his time to Ethereum based projects. Previously was working on SingularDTV/Breaker and snglsDAO trying to decentralize media and entertainment. Before that he was building a Title III equity crowd funding platform using Ethereum tokens in 2016.
- Tyler Ward - Tyler runs Proof Systems, one of the largest marketing & UI/UX companies specializing in digital assets. Tyler has worked with ConsenSys, Earn.com (who was acquired by Coinbase), FOAM, Dether, & Grid+, Centrality, Sylo (a decentralized messaging dApp with 300k users in NZ), NEAR Protocol, DARMA Capital, SingularDTV & the snglsDAO. He started working in crypto in late 2016 & has bought and sold numerous ecommerce companies."
Funding
"This week, they announced that they have closed a seed round from investors including Fourth Revolution Capital, ParaFi, Kain Warwick (Synthetix), Stani Kulechov (Aave), Andrew Keys (DARMA Capital), Centrality, Blockchain Companies and Dahret Group."
Partners
- Partners with PoolTogether (11-2-2021).
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